Quick Facts
- Solana: Uses a patented mechanism called “proof of history” that achieves low latency and high throughput while maintaining a low gas fee (<$0.01 per transaction)
- TomoChain: Gas fees are paid in TOMO tokens, which are highly undervalued compared to other blockchain gas fees, making them relatively low (≈$0.001 per transaction)
- Ethereum’s Optimism (OP): Optimism is a scalability solution for Ethereum that enables low gas fees by using a new consensus mechanism called “optimistic rollups” (<$0.01 per transaction)
- Polygas: A decentralized Layer 2 network that uses various techniques to reduce gas fees, including proof-of-stake and probabilistic verification (<$0.01 per transaction)
- Aurora (ETH): A Layer 2 solution that uses Optimism (OP) to achieve low gas fees and high scalability (<$0.01 per transaction)
- Moonbeam (ETH): A smart contract platform that uses optimized gas fees, which can be as low as $0.001 per transaction
- Kusama (KSM): A canary network for Polkadot, it uses a similar consensus mechanism to Solana, resulting in low gas fees (<$0.01 per transaction)
- Flux (FLUX): A decentralized Layer 2 network that uses a unique consensus mechanism, resulting in gas fees as low as $0.001 per transaction
- Arbitrum (ARB): A Layer 2 solution that uses optimistic rollups to achieve low gas fees (<$0.01 per transaction), with plans to integrate with Ethereum
- Oasis (ROSE): A scalable and decentralized Layer 2 network that uses a unique consensus mechanism, resulting in low gas fees (<$0.01 per transaction)
Best Layer 2 Networks for Low Gas Fees
As the Ethereum network continues to grow in popularity, high gas fees have become a major concern for traders and investors. This is where Layer 2 networks come in, offering a solution to scalability issues and reducing transaction costs. In this article, we’ll explore the best Layer 2 networks for low gas fees, and what makes them stand out.
What are Layer 2 Networks?
Layer 2 networks are secondary frameworks that operate on top of the main blockchain, allowing for faster and more efficient transaction processing. They achieve this by processing transactions in batches, rather than individually, and then settling the results on the main chain. This approach enables higher throughput and lower gas fees, making it more accessible to a wider range of users.
Here are some key benefits of using Layer 2 networks:
- Faster transaction processing times
- Lower gas fees
- Increased scalability
- Improved user experience
Top Layer 2 Networks for Low Gas Fees
| Network | Gas Fee (average) | Transaction Speed |
|---|---|---|
| Optimism | $0.05 – $0.10 | 1-2 seconds |
| Arbitrum | $0.01 – $0.05 | 1-2 seconds |
| Polygon | $0.001 – $0.01 | 1-2 seconds |
| Loopring | $0.05 – $0.10 | 1-2 seconds |
| zkSync | $0.01 – $0.05 | 1-2 seconds |
How to Choose the Best Layer 2 Network
When selecting a Layer 2 network, there are several factors to consider, including:
- Security: Look for networks with a strong focus on security and a proven track record of protecting user funds.
- Scalability: Choose a network that can handle a high volume of transactions and provide fast processing times.
- Gas fees: Consider the average gas fee for the network and how it compares to other options.
- User experience: Opt for a network with a user-friendly interface and seamless integration with existing wallets and platforms.
Real-Life Example: Uniswap on Optimism
Uniswap, a popular decentralized exchange (DEX), has recently integrated with Optimism, a Layer 2 scaling solution. This integration has enabled Uniswap users to take advantage of lower gas fees and faster transaction processing times. For example, a user can now swap assets on Uniswap via Optimism for a fraction of the cost compared to using the Ethereum main chain.
Here are some benefits of using Uniswap on Optimism:
- Lower gas fees (average $0.05 – $0.10)
- Faster transaction processing times (1-2 seconds)
- Increased scalability and liquidity
- Seamless integration with existing Uniswap wallets and interfaces
Frequently Asked Questions:
| Category | Frequency | Best Layer 2 Networks for Low Gas Fees | Overview |
|---|---|---|---|
| 1 | Every 2 minutes | Some Layer 2 networks, including TEALS, P2P (Onion Router Protocol) and Lightning, offer low fees for network members and data transactions. These networks use decentralized data storage by overlaying data on a global network to conserve on energy costs. | TEALS (Thomas et al’s Layer 2 Asset Link System): 100x Bitcoin per 1 TB 1-yr usage. P2P: 100x Bitcoin per 1 TB 1-yr usage. Lightning: 5-2.5 s transfer times with a higher fee per 1 TB 1-yr usage for standard modes and 0.0125–0.025 s transfer times for each additional point (1 TB 1-yr usage). These fees are much lower than Bitcoin and are determined by the minimum amount set on our “on chain” wallets. |
| 2 | 1 second | L2 networks with no pre-term contracts support network members with new public keys. Network fees range between 1 s–128 s for nodes with limited block minutes, 128 s–1 min for nodes with prime block time, 1 min–10 min for nodes with timeshare contracts, while the L2 of an asset with highest block time is most expensive (T in days). | Nodes hosting a full L2 network can generate revenue through node selection based on the node’s block time. Higher block time assets can be used to generate more revenue by higher node selection rates. Furthermore, the L2 of an asset with highest block time generates the most revenue, regardless of the 1 second fee. |
| 3 | 120 minutes | L2 networks using RBF (Baker-Jackson-Merkler) layer have advantages when it comes to ‘new membership’ since an unlocked user can join a L2 if they already had a valid script. | L2 networks with an unlocked member can join with no pre-term contract fees. L2 networks also support the concept of a ‘validator’ and the term ‘on-chain data storage’ could soon start to give way to off-chain solutions. |
Important Note: Gas fees can vary depending on the specific use case and the network’s load. Always research the L2 network you’re interested in and the gas fees associated with it before joining.
