5 Best Upcoming Layer 2 Crypto Projects To Watch In 2023

Arbitrum, Optimism, zkSync, Starknet and Polygon zkEVM may be the most known Ethereum’s layer-two (L2) scaling solution, but what about high potential L2 project that are just starting out?

Layer 2 solutions are an absolute must on your crypto watchlist today because they are absolutely exploding in terms of adoption.

Etehreum is a slow and congested blockchain, and L2s make it faster cheaper and safer. It’s clearer than ever that Ethereum will need to rely on a diverse L2 ecosystem to keep thriving.

In this post, we’ll cover the alternative L2 scene and how to get started testing these networks right away.

Let’s focus on the five most exciting upcoming L2s you should be watching!

1. Scroll

Scroll is a general-purpose zk-rollup project building a zkEVM (Zero Knowledge Ethereum Virtual Machine).

A zkEVM can essentially execute smart contracts in a way that’s compatible with zero-knowledge-proof computations and existing Ethereum infrastructure which makes it very powerful.

zkEVMs drastically reduce the cost and latency of Ethereum transactions while preserving security.

Early zk-rollups projects were all application specific, so restricted to specific crypto use-case. Scroll, on the other hand, aims for compatibility with any Ethereum app.

Scroll is made up of three main infrastructure components: the Scroll Node, the Roller Network, and the Rollup and Bridge Contracts.

The Scroll Node collects transactions from users, rolls them up in blocks, and submits them to Ethereum.

The Roller Network generates zkEVM validity proofs, proving the validity of transactions.

Finally, the Rollup and Bridge Contracts provide data availability and are responsible for the transfer of funds between Ethereum and Scroll.

Valuation and token

Scroll has raised $80 million and has a current valuation of $1.8 billion.

Scroll doesn’t have a token yet, but is expected to release one later this year at the launch of its mainnet.

How to test Scroll?

Scroll Alpha Testnet is live since February. You can connect your wallet and then send your Goerli tokens between Ethereum and Scroll using the Scroll Bridge.

2. Linea

Linea, previously known as ConsenSys zkEVM, is a recently launched zkEVM public testnet developed by Ethereum software giant ConsenSys which built MetaMask.

Linea is a developer-ready zk rollup that allows the creation of highly scalable and low gas fee Ethereum dApps.

It’s ZK and EVM compatible to provide scalability and adaptability to programmers without any need for prior knowledge of ZK technology.

Linea comes with native integrations with popular tools such as MetaMask and Truffle.

Token and valuation

In a December blog post, Linea’s team said it was too early to discuss launching a token, but is thinking of ways to reward its early users.

This opens the door to a potential future airdrop for early testers.

Its current valuation is not known.

How to test Linea?

You can use ChainList to add Linea Testnet to your MetaMask.

On Linea Testnet Portal, you will find links to Linea documentation, the Bridge, Swap and Explorers that you can use to test the network.

3. Base

In February, Coinbase introduced its secure, low-cost, developer-friendly Ethereum L2 solution Base. It lets anyone build dApps on-chain with a goal to bring the next billion users to web3.

Coinbase initially considered launching a Layer 1 blockchain similar to BNB Smart Chain but instead decided on an interoperable, multichain Ethereum solution.

Base is powered by Coinbase’s ecosystem of products, users, and tools. It aims to leverage Ethereum’s security to become open-source, permissionless, and decentralized L2.

By offering gasless transactions, developer APIs, and multichain applications, Base would like to act as a gateway to bring Coinbase’s products, users, and assets into the decentralized crypto-economy.

Token and valuation

Base doesn’t currently plan on launching the $BASE token and will use ETH for gas, but this doesn’t exclude a potential token in the future.

Its current valuation is not known.

How to test Base?

Base has a live testnet. Coinbase wallet supports it by default and you can add it inside the app from the list of ETH Testnets.

To use it on Metamask, you can use Chainlink to add Base Goerli Testnet to your wallet.

You can use Coinbase’s faucet to receive testnet ETH and then bridge assets on Base Bridge.

4. Fuel

Fuel network is being developed by Fuel Labs. It defines itself as the fastest execution layer for modular blockchains.

Fuel tackles Ethereum scalability problems by introducing modularity, where the execution layer is separate from the data availability and consensus layer.

It aims to offer the highest security and flexible throughput on Ethereum. To achieve this, Fuel’s technology stack relies on three central pillars: Parallel Transaction Execution, Fuel Virtual Machine (FuelVM), and developer-friendly experience with the Sway programming language.

Ethereum can execute transactions in sequence, one after the other. Parallel transaction execution provides a much higher transactional throughput via FuelVM. Sway, on the other hand, provides a powerful developer experience.

Token and valuation

For now, Fuel has not confirmed the release of a token. But Fuel is likely to airdrop a token ahead of the launch of its mainnet.

Fuel Network has raised $81 million.

How to test Fuel?

Fuel is currently in its Beta 3 testnet phase.

To try the testnet, you first need to install Fuel wallet and request some test ETH from the faucet.

Then you can try out different dApps from Fuel’s rich ecosystem.

4. Aztec

Aztec is a layer 2 zk-rollup solution for Ethereum, focused on privacy.

Aztec is very much a work in progress, but it will ultimately allow developers to build fully programable, privacy-preserving smart contracts with a programming language called Noir.

Aztec is an encrypted blockchain that uses zk-rollup proofs to enable confidential transactions out of the box.

However, the team has no plans for EVM compatibility or to support Solidity. Aztec’s focus on privacy is fundamentally incompatible with the EVM architecture and Solidity’s semantics.

Token and valuation

Aztec currently does not have a token, but a future airdrop is possible.

The project has raised $119 million.

How to test Aztec?

Aztec recently announced the discontinuation of zk.money which enabled fully private ZK transactions, as well as Aztec Connect, the privacy infrastructure that powered it.

This means there is currently no testnet to try and we’ll have to wait for new announcements from the team.

The team’s focus will now shift toward the development of two major, interlinked products:

Noir, the universal language to write programs in zero knowledge, and its next-generation decentralized general-use encrypted zkRollup.

Bottom line

Beyond the main Layer 2 projects, the Ethereum L2 ecosystem is rapidly expanding, with innovating and promising scaling solutions on the way.

The upcoming projects described in this post - Scroll, Linea, Base, Fuel and Aztec - show that there is a growing range of solutions in this field.

Although they differ in their fundamentals, their main goal is to provide enhanced scalability, efficiency, and user experience on the Ethereum network.

As these initiatives go from testnets to production networks, they will undoubtedly play an important part in shaping Ethereum’s future and boosting its adoption.

Keep an eye on these L2s and their testnets to stay ahead of the curve and possibly capitalize on future L2 airdrop opportunities!

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Disclaimer: This content is for educational purposes only and should not be considered as financial or any other advice. Always do your own due diligence before investing your hard-earned money.

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