Nevertheless, transferring value between L1 and L2 can be complex and fragmented, often requiring the use of decentralized exchanges or blockchain bridges, which have been used as honeypots for hackers.
To simplify this entire process, Ramp provides direct support for these innovative blockchain ecosystems, paving the way for the mass adoption of L2 and even L3 networks.
What are L2s and why they matter
At their core, L2s are secondary networks that run on top of primary blockchain systems. L2s are highly scalable due to their ability to output a much higher number of transactions at a faster pace, and much lower fees. L2s secure themselves via periodic commits to their much more robust L1s.
We’ve already discussed why we’re bullish about them in a previous post.
While L2s can be built around most Layer 1 chains, like Bitcoin, most of the L2 activity today revolves around Ethereum - as it’s by far the most popular smart contract platform in existence.
Even Vitalik Buterin has expressed his belief that L2s are the future of Ethereum scaling. As we’ve already explained, the Merge — Ethereum’s move to a more efficient PoS consensus algorithm — has not, in itself:
- Lowered transaction fees
- Made transactions substantially faster
- Scaled Ethereum on its own
It was only with the addition of L2s that Ethereum's scalability woes were addressed.
L2 ecosystems are growing
If you’re building an Ethereum dApp, it’s very likely that you are — or have considered — building on top of L2 networks like Arbitrum, Optimism, Loopring, Immutable X, zkSync or Starknet.
Popular web3 dApps like Uniswap and Curve already run on top of these networks while others like Synthetix and dYdX are L2-native.
L2s offer leading technology solutions for scalability and, by consequence, user experience. Especially after the Merge, they should continue to represent an important piece of the web3 market.
(Source - L2Beat: 04 Jul 2023)
These are all supported by Ramp, by the way.
Jumping into L2s without Ramp
But there is a problem. Despite their obvious advantages for users and developers alike, access to L2 networks can be cumbersome, clunky, and even unsafe.
The process of using a dApp on an L2 ecosystem can often involve the following:
- Exiting the dApp
- Buying L1 cryptoassets on a third-party service
- Transferring the L1 cryptoassets to a hot wallet
- Visiting another third-party service in the form of a:
- Decentralized exchange (with high fees)
- Bridge service (with security risks)
- Manually enabling wallet support for a specific L2
- Receiving funds from a DEX or bridge in an L2-enabled wallet
- Connecting the wallet to an L2 dApp
All these steps are also adding up unnecessary fees for the user and exposing them to bridges which are well known to be recurring subjects of hacks.
For many web3 newcomers, an onboarding experience like this can dissuade them from using your dApp.
Jumping directly into L2s with Ramp
By integrating with Ramp, you save your users all these steps. All they have to do is:
- Buy crypto straight from an L2 dApp through the Ramp widget.
That’s it. No high fees, no risky bridges, no other stops along the way. There’s no need for users to leave your application.
If you’d like to offer your users an easy and safe way to access web3, partner with us at no cost.
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