Electus DAO
@electus-dao
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Institutional Investment Growth in Cryptocurrency:
Institutional investment in cryptocurrency has grown significantly in recent years, driven by increasing regulatory clarity, enhanced security infrastructure, and the mainstreaming of digital assets. The rise of cryptocurrency-focused funds, exchange-traded products (ETPs), and custodial services has made it easier for institutions to enter the market. Major players, including hedge funds, asset managers, and even pension funds, are diversifying portfolios with crypto, particularly in established assets like Bitcoin and Ethereum.
@slingshot #SLING 0 reply
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Layer 1 and Layer 2 solutions in the blockchain ecosystem:
Layer 1 Solutions
Layer 1 refers to the base layer or the underlying blockchain architecture on which all transactions are processed. Blockchains like Bitcoin, Ethereum, and newer networks like Solana and Sui are examples of Layer 1. This layer handles all on-chain activities, including transactions and smart contracts, but often encounters issues like high fees, slow transaction speeds, and scalability limitations due to its decentralized design.
To address these, some Layer 1 solutions employ different consensus mechanisms, such as Proof of Stake (PoS) instead of Proof of Work (PoW), or focus on modular design to enhance scalability. For instance, Ethereum transitioned to PoS with the goal of reducing energy use and preparing for future scalability improvements.
Layer 2 Solutions
Layer 2 solutions are protocols built on top of Layer 1 to enhance scalability and efficiency by moving some activities off-chain while... 0 reply
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