Huobi Research Institute Published Latest Report on Layer 2 bridges

LONDON, Nov. 11, 2021 /PRNewswire/ -- Huobi Research Institute, the leading blockchain application research team, has published its latest research report:「Layer 2 bridges: the present and the future」.

Main Content of the report

There has been an exceptional growth of the layer 2 ecosystem of Ethereum since September, as the total value locked in layer 2 increased six times. However, Huobi Research Institute found  that restricted layer 2 interoperability leads to three severe consequences: fragmented liquidity, isolated systems and low composability. The team recognized that raising layer 2 adoption is challenging if these issues continue to exist.

In the second chapter, the team illustrated how token bridges facilitate moving tokens across various layer 2 networks with improved time efficiency, and therefore rebinding liquidity. Two different types of implementations of these token bridges are introduced.

Moving on, the report explained that enabling cross-layer smart contract interaction is the ultimate solution for layer 2 interoperability. A current prototype of this solution as well as possible future iterations are discussed.

In summary, the team believe that improving layer 2 interoperability will accelerate mainstream adoption of Ethereum layer 2, and from token bridges to bridges that enable cross-layer smart contract interaction is the necessary path towards a thriving ecosystem.

For more details, please visit: https://huobiresearch.medium.com/layer-2-bridges-the-present-and-the-future-2da5aeb1e942

About Huobi Research Institute

Huobi Blockchain Application Research Institute (referred to as "Huobi Research Institute") was established in April 2016. Since March 2018, it has been committed to comprehensively expanding the research and exploration of various fields of blockchain. As the research object, the research goal is to accelerate the research and development of blockchain technology, promote the application of blockchain industry, and promote the ecological optimization of the blockchain industry. The main research content includes industry trends, technology paths, application innovations in the blockchain field, Model exploration, etc. Based on the principles of public welfare, rigor and innovation, Huobi Research Institute will carry out extensive and in-depth cooperation with governments, enterprises, universities and other institutions through various forms to build a research platform covering the complete industrial chain of the blockchain. Industry professionals provide a solid theoretical basis and trend judgments to promote the healthy and sustainable development of the entire blockchain industry.

Contact Huobi Research Institute:
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Medium:                     Huobi Research
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SOURCE Huobi Research