Scalability
Intermediate
What is
Layer 2?
Scaling solutions built on top of a base blockchain (Layer 1) to increase throughput and reduce fees.
Layer 2 (L2) solutions process transactions off the main chain while inheriting its security. They reduce congestion and fees by batching or channeling transactions. Ergo's eUTXO model and NiPoPoWs make it well-suited for various L2 approaches including state channels and rollups.
Key Points
- Built on top of Layer 1
- Processes transactions off-chain
- Settles periodically on main chain
- Reduces fees and increases throughput
- Inherits L1 security guarantees
- Multiple approaches: channels, rollups
Related Infographics
Frequently Asked Questions
Questions about Layer 2
Common questions about this topic
How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
How-to
Getting Started
Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Comparison
Getting Started
What can I do with Ergo?
Ergo supports a full ecosystem: trade on Spectrum DEX, use SigmaUSD stablecoin, mix transactions with ErgoMixer, collect NFTs on SkyHarbor, mine with GPUs, lend/borrow on DuckPools, bridge to other chains via Rosen, and build dApps with ErgoScript. It's a complete platform for decentralized finance and applications.
Explainer
Getting Started
Is Ergo mining profitable in 2025?
Ergo mining profitability depends on your electricity cost, GPU efficiency, and ERG price. Use mining calculators with your specific hardware and power costs. Ergo is one of the most profitable GPU-mineable coins due to Autolykos being ASIC-resistant. Profitability improves significantly with cheap electricity.
Explainer
Mining