"The core idea behind “Layer 2” is that we can use data outside of a main blockchain (“off-chain data”) to provide guarantees about assets sitting on the main blockchain (“on-chain data”). For example, that off-chain data might give you the right to withdraw an asset held in an on-chain escrow contract on Ethereum. But the ownership of that asset changed hands without touching Ethereum."
Editorial, created by former Facebook employees lets you create and sell your own crypto collectibles. One piece sold for $300. According to the founder, "Other solutions are web-based, require you to have a third party browser extension installed, and require you to purchase cryptocurrency first to be part of the community"
"We saw a lot of layer one protocols in 2018, and then in 2019 we started seeing more layer two protocols. We noticed a trend: when people saw problems around scalability, they started going after the different layers separately. . . As the ecosystem expands, I think we’ll probably see a trend going back towards fragmentation of those layers and specialization on the layer-level to best support different applications built on top of them"
Liquid Tokens continuously recalculate their price in relation to their collateral token by maintaining a fixed ratio between the Liquid Token’s total value and the value of its reserve pool. This ratio, known as the “reserve ratio” (RR), can be used to maintain the price stability of a Liquid Token.
The problem with decentralization in crypto is that it has become the be all and end all. The mere word ‘centralized’ or suggesting that a central entity has any control on any aspect of a company’s operations is immediately viewed negatively. . .Similar to a spider’s web, under this model crypto teams need to constantly increase the reach and complexity of the decentralized product they are building