Which of the Network Layers are installed in the Cryptocurrency Market | Digital Marketing+Finances!

Which of the Network Layers are installed in the Cryptocurrency Market:
The Network Layer (Layer 2 or L2) in the cryptocurrency market refers to solutions designed to improve the scalability and efficiency of blockchain networks such as Ethereum and Bitcoin. These networks, known as Layer 1 (L1), have scalability issues, where increasing the number of transactions can result in high gas fees and slow validation.
L2 solutions aim to alleviate this pressure by processing transactions outside of the main blockchain and then aggregating them into batches for verification, while maintaining the security of the main layer.
Top Innovations in 2024: zk-Rollups and Polygon 2.0: One of the most significant advancements is the use of zk-Rollups (Zero-Knowledge Rollups). Polygon, a leading L2 platform, has released Polygon 2.0 and its zkEVM (zero-knowledge Ethereum Virtual Machine).
This technology allows thousands of transactions to be processed outside the main network, with cryptographic proof that guarantees the security and integrity of data when verified on the Ethereum network (Cointelegraph).
L2 Layers in Bitcoin: Although Bitcoin has traditionally been simpler, it is also seeing a wave of L2 innovations. Stacks is an important solution, bringing features such as smart contracts and more programmability to Bitcoin, something previously restricted to Ethereum. Additionally, stablecoins like Tether can be issued on Bitcoin via the Taproot Assets protocol, promising to increase the network's utility (TradingView).
Central Bank Digital Currencies (CBDCs) and Digital Identities: Drex, the Brazilian digital currency, is one of the most advanced initiatives in this sector. The infrastructure behind Drex uses blockchain to tokenize real assets, and there are discussions about its role in creating digital identities.
This is a central theme in 2024 as many nations are exploring CBDCs as a way to streamline financial transactions and create a secure digital identity for their citizens (TradingView).
Regulatory Challenges and Institutional Adoption: Regulation is still a limiting factor for the large-scale adoption of L2 solutions. However, by 2024, the regulatory environment is expected to advance to enable greater scalability and adoption of blockchain-based financial products and services, especially with growing institutional interest in solutions that use decentralized technologies (Exame).
Gaming Platforms and NFTs: In the gaming sector, platforms like Immutable are using L2 to enable NFT transactions without gas costs and with fast confirmations. These platforms are seen as fundamental to the mainstream adoption of cryptocurrencies, as they offer a friendly and scalable experience for users (Forbes Portugal).
Benefits of L2 Solutions:
Cost Reduction: When processing transactions outside of the mainnet, transaction costs (gas fees) are significantly reduced.
Scalability: L2 allows for a much higher volume of transactions per second (TPS) compared to mainnets.
Thank You, Guys.