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Web3 Explainers: Layer 2

Web3 Explainers: Layer 2

Layer 2 (L2) blockchains are solutions built on top of an existing Layer 1 (L1) blockchain (like Ethereum) to improve its performance. In simpler terms, if the blockchain was a road, Layer 1 would be the main highway, and Layer 2 would be like a smaller, parallel road built to ease traffic on the highway. The goal of Layer 2 chains is to make transactions faster, cheaper and more scalable.

Why Do We Need Layer 2?

Blockchains, especially popular ones like Ethereum or Bitcoin, often face issues like slow transactions and high fees when too many users are trying to make transactions at once. This is because every transaction has to be processed by all the computers (or “nodes”) in the network, potentially slowing things down and making performance inconsistent.

Layer 2 chains help solve this by processing transactions separately from the main blockchain, reducing the workload on Layer 1. Once the transactions are bundled or “rolled up,” they are sent back to the main blockchain, significantly speeding up the process.

How Do Layer 2 Solutions Work?

Layer 2 solutions relieve some of the main blockchain’s burden, allowing users to conduct transactions without congesting the main network. Here’s a breakdown of how this works:

  1. Transaction Bundling: Multiple transactions are grouped together.
  2. Processing Off-Chain: These transactions are processed “off-chain,” meaning they don’t happen directly on Layer 1.
  3. Settlement on Layer 1: After processing, the result of these transactions is sent back to the main blockchain, reducing the load.

An easy analogy would be an amusement park with long lines for rides (the Layer 1 blockchain). Layer 2 would be a fast pass line that processes smaller groups more quickly, then checks them in with the main system.

LEARN MORE:
“What is a Layer-2 Blockchain?” – CoinBureau, October 2023

Examples of Layer 2 Solutions

Polygon (formerly Matic): One of the most well-known Layer 2 solutions for Ethereum, Polygon uses a technology called “sidechains” to help Ethereum scale. Polygon runs alongside Ethereum, processes transactions off-chain and then updates the Ethereum blockchain with the results.

Arbitrum: This uses a method called “rollups” to bundle transactions together, verify them off-chain and then submit the summary to Ethereum. It helps reduce costs and speed up transactions.

Optimism: Similar to Arbitrum, Optimism uses rollups to bundle transactions and reduce the cost of using Ethereum while keeping the security benefits of Layer 1.

Why is Layer 2 Important for Web3?

In the Web3 world, where decentralized applications (dApps), smart contracts, and DeFi (decentralized finance) platforms are booming, scalability and low transaction costs are critical. If users have to wait a long time or pay high fees every time they want to interact with a blockchain, mass adoption becomes much more challenging.

Layer 2 solutions are important because they offer:

Scalability: More transactions can be processed, allowing blockchains to handle millions of users at once.

Reduced Costs: Since fewer transactions are processed directly on Layer 1, the fees (often called “gas fees”) can be significantly lower.

Faster Transactions: Moving some of the work off-chain means transactions can often happen in seconds or minutes instead of hours.

Layer 1 vs. Layer 2 and Beyond

  • Layer 1 (L1): This is the foundation, or main blockchain, like Ethereum, Bitcoin or GalaChain. It provides the most security but often struggles with speed and high costs as it grows in popularity.
  • Layer 2 (L2): These are secondary systems that sit on top of Layer 1 and help by processing transactions faster and more efficiently without compromising too much on security.

Think of Layer 1 as a big city with traffic congestion. Layer 2 is like a fast train running above ground to take people out of the crowded streets and speed up their commute. The existence of this train benefits not only the riders of the train, but the car commuters as well, who can then enjoy less congested streets below.

LEARN MORE:
“Layer 3 Blockchains: What They Are and How L3s Improve Scalability” – CoinGecko Guides, November 2023

Layers are Key to Blockchain’s Future

In a world where blockchain usage is growing daily, the technology needs to scale quickly. Layer 2 solutions are not just an option but a necessity for the future of Web3. They ensure that decentralized platforms can function smoothly without making users deal with high fees or slow transaction times.

With the rise of popular Layer 2 solutions like Polygon and Arbitrum, users can look forward to a blockchain world where interacting with decentralized apps and services is as seamless as using traditional web apps—fast, cheap, and scalable.

GalaChain is a Layer 1 blockchain with the potential for integrated Layer 2 systems. Once the GalaChain ecosystem is used by enough external developers and users, organization will be streamlined through the use of multiple layers.

DevSpeak: Cloud Computing

DevSpeak: Cloud Computing

Welcome back to another edition of DevSpeak! In this series, we’re all about filling you in on the basics of terms you’ve probably heard tossed around in tech circles without fully understanding what they mean. Today, we’re diving into one that’s been around a while but is still causing its fair share of confusion – cloud computing!

Imagine you’re organizing a huge event. You could either buy everything yourself—chairs, tents, catering equipment—or you could rent all of these items for the day, using them only as long as you need, and then return them. This is more or less how cloud computing works for businesses and individuals in today’s world.

Cloud Computing, Defined

At its core, cloud computing is the delivery of computing services such as storage, processing power, databases, and software over a shared connection, often referred to as “the cloud.” Instead of owning physical hardware or software on your premises, you access and use these resources online, typically through a service provider like Amazon Web Services (AWS), Microsoft Azure or Google Cloud.

Think of cloud computing like using electricity. You don’t need to own a power plant to run your lights, fans, or electronic gadgets. You simply plug into an outlet and pay for the amount of electricity you consume. Similarly, cloud computing lets you “plug into” vast computational resources and only pay for what you use without owning any of the underlying infrastructure.

While this cloud connection typically happens over a standard internet connection, providers typically create permissioned and secure ways to access resources.

The Silver Linings of the Cloud

There’s lots of ways that the idea of the cloud has been amazingly beneficial in people’s lives. We often don’t even think about all the ways we interact with cloud services today, even though many things we do are facilitated by cloud computing under the hood.

Cost Efficiency

Using the cloud means you may not have to buy expensive hardware or software upfront.

Imagine a startup needing 100 powerful servers for just one week to run some tests. Buying 100 servers would be incredibly expensive, and those servers might sit unused afterward. Instead, they can rent these servers in the cloud for the short time they need them and save a lot of money.

Scalability

Let’s go back to our party example. Oh no! More guests showed up than expected! You’ll have to scramble for more chairs, tables, and food.

In traditional computing, if your website traffic unexpectedly spikes, you’d need to buy more servers – expensive and time consuming. With cloud computing, however, resources can scale automatically. If your needs grow, you can instantly be allocated more computing power or storage from the cloud. Similarly, if traffic drops, you only pay for the reduced amount of resources used without having bought extra servers you don’t need anymore.

Flexibility

When all the tools are yours, your flexibility is limited to your toolkit.

Cloud computing allows businesses to be flexible in how they use their resources. If your project requires more computational power for a short period, you can ramp up easily without complicated logistics. If you need less, you can scale back. No long-term commitments are required, and there are enough cloud providers out there that they have an interest in keeping their customers happy.

Accessibility

Physical servers are in a place, and setting up secure ways to access your resources anywhere you want is complicated and a potential security risk. The cloud is already set up for this.

The cloud allows you to access files and applications from anywhere in the world, as long as you have an internet connection. No matter where you are, you can access the tools you need.

The Darker Side of the Cloud

While cloud computing has plenty of benefits, it’s not without its downsides.

Security and Privacy Concerns

When you rent something, you don’t have full control over it. You have to trust whoever does have full control over it.

When you store your data on someone else’s servers (in the cloud), there’s a risk of breaches or data leaks. While cloud service providers invest heavily in security, they can still be targeted by hackers. Not all cloud services are equal – look carefully at the ToS on a cloud provider and make sure you’re comfortable with the level of access they themselves have to your data.

Downtime and Outages

Back to the party example — delivery truck is stuck in traffic. Nothing you can do. You’ll have an event without seating for a while. 

Even large cloud providers experience outages. If their systems go down, you could lose access to your tools and resources. It’s worth noting that they typically will know what they’re doing and work hard to fix problems. Being out of control can be hard, however, and with cloud services you’ll have to accept that there may occasionally be issues that are out of your hands.

Ongoing Costs

While renting might save you money upfront, long-term rental fees can add up. For some businesses, using the cloud can become more expensive over time than buying your own resources.

Cloud services do what they do because they’re trying to make money. Expanding your own infrastructure can save you money in the long run, so it’s important to make sure that cloud computing you use is mutually beneficial.

Vendor Lock-In

One more visit to the party example. Let’s say that delivery truck does show up, but they brought double the tables and no chairs! At this point, it’s tough to get another truck from another company out there without sending away the one that has the rest of your party supplies… even if minus chairs.

Switching between cloud providers isn’t always simple. Each provider has different systems, and moving your applications and data from one to another can be time-consuming and costly. It’s best to do research on any cloud provider you work with an ensure that you’re pretty likely to be happy with their service.

Parting the Clouds

Cloud computing has revolutionized the way we think about accessing and using digital resources. By making powerful tools available over the internet, the cloud has changed the way both businesses and individuals interact with the digital world. However, like any technology, it comes with trade-offs – just because something can be handled on the cloud doesn’t mean it always should.

Much like renting versus owning, cloud computing allows companies and individuals to use what they need when they need it, without the hefty upfront cost. The functionality that these services have unlocked across the whole of the internet has opened up new ways to build, collaborate and navigate life. 

That’s it for today, but we’ll be back soon with another DevSpeak!

Gala at TOKEN2049 2024 Singapore

Gala at TOKEN2049 2024 Singapore

TOKEN2049 Singapore, one of the most anticipated crypto events of the year, is taking place on September 18th and 19th, 2024. This prestigious gathering brings together the leading minds and companies in Web3 to discuss the future of the blockchain industry, and we’re thrilled to announce that key Gala team members will be there to represent our growing ecosystem!

What is TOKEN2049?

TOKEN2049 has earned its place as a premier event in the crypto calendar, held annually in Singapore and Dubai. This event serves as a global hub for blockchain enthusiasts, developers, investors, market makers and key industry leaders. TOKEN2049 shines a spotlight on the latest trends, technologies, and ideas in the Web3 space, creating unparalleled opportunities for networking and innovation.

With thousands of participants from across the globe, TOKEN2049 is a melting pot of ideas that are shaping the future of blockchain. Founders, entrepreneurs, investors and developers converge to exchange insights, form partnerships and explore the immense potential of decentralized technologies.

Why Gala is Excited to Attend

For Gala, TOKEN2049 is an exciting platform to showcase our vision for a decentralized future, one that goes far beyond gaming and entertainment. As we continue to evolve, the opportunities presented by TOKEN2049 couldn’t come at a better time.

Partnerships and Collaborations

In addition to giving us a chance to make plans and build with existing strategic partners, the event provides us with the perfect opportunity to explore new partnerships that align with our mission of empowering communities through blockchain. As the global Web3 industry rapidly expands, we’re looking forward to engaging with potential partners who share our vision and can bring fresh ideas to our growing ecosystem.

Expanding Our Mini-App Gaming Ecosystem

Our recent success with the Telegram Mini-App gaming ecosystem has opened doors for even more growth and collaboration. TOKEN2049 is the ideal venue to discuss how we can expand this ecosystem even further, offering more opportunities for developers and gamers to engage with Gala-powered experiences while collecting awesome rewards.

$TREZ and Potential Announcements

TOKEN2049 could also be the stage for an exciting announcement regarding $TREZ, our latest venture in the world of decentralized gaming and assets. Get ready for $TREZ to enter the wider crypto community, creating excitement and momentum for our newest projects.

What We Bring to the Table

At Gala, we’ve always believed in the transformative power of decentralization and community-driven innovation. Our presence at TOKEN2049 will focus on highlighting the capabilities of GalaChain, our Layer 1 blockchain designed to handle the high transaction volumes demanded by modern applications, especially gaming. GalaChain’s versatility, efficiency and low fees make it a cornerstone for scaling Web3 industries beyond entertainment, including healthcare, finance, supply chain management​ and more.

TOKEN2049 is the perfect platform to demonstrate how GalaChain, powered by multiple DePINs and our growing node ecosystem, is setting new standards for scalability and security in the blockchain space. We’re eager to connect with like-minded innovators who are ready to collaborate on this revolutionary journey.

Looking Ahead

As we prepare for TOKEN2049, we’re energized by the possibilities this event will bring. The connections, ideas and partnerships formed here will shape the next steps in Gala’s evolution, pushing us closer to realizing our vision of a decentralized world powered by GalaChain.

Introducing Accountless Wallets on GalaSwap

Introducing Accountless Wallets on GalaSwap

Today we’re announcing a huge milestone in the evolution of GalaSwap, designed to revolutionize the way users and developers interact with GalaChain.

GalaSwap now empowers users to easily swap, create and manage GalaChain tokens through on-chain dApps without the need for a Gala account.

New Ways to Connect

GalaSwap is growing, and the broader Gala ecosystem is evolving toward greater decentralization than ever. This latest update has the potential to massively boost the GalaChain user base, opening access to the wallet features of GalaChain without requiring the creation of a Gala account.

Users can now create a GalaChain wallet and interact with GalaChain tokens using an existing Ethereum wallet, enabling a smoother experience that is more intuitive and less centralized.

For some time Gala has offered users the ability to connect an Ethereum wallet to their account, simplifying processes like bridging and interaction with Ethereum-based secondary markets like OpenSea.

Users can now establish an initial connection using their Ethereum wallets alone. By signing a transaction in Metamask, you can create a brand new accountless GalaChain wallet.

This new system will be especially beneficial for third party GalaChain creators building dApps from a variety of industries, giving them the freedom to customize their user experience more deeply and interact with their audiences without Gala (the company) acting as an intermediary. They will enjoy the power and function of GalaChain, wrapped in a user interface that they are free to customize as they see fit.

New Features

Features included in the recent update will enhance any web3 user’s experience and access to GalaChain tokens, whether or not they have a Gala account.

  • Existing Gala accounts can create a new web3 wallet via Metamask.
  • Existing Metamask users can generate a GalaChain wallet address with no Gala account.
  • GalaChain tokens can be viewed and managed within GalaSwap.

Evolution of GalaSwap

As part of this exciting development, GalaSwap will soon rebrand to GalaConnect, further emphasizing our commitment to connectivity and ease of use. As it continues to evolve with more streamlined features, this platform will serve as the new hub for all your GalaChain interactions.

Empowering Users and Developers

GalaSwap is more than just a platform for swapping tokens; it’s a gateway to freedom for our users and developers. By allowing third parties to develop their own GalaChain dApps with easy onboarding, we are fostering a more inclusive and expansive ecosystem.

For Users

  • No GalaChain Account Needed: Start interacting with GalaChain tokens immediately with your existing Ethereum wallet.
  • Complete Web3 Portfolio Management: Easily manage your digital assets with a comprehensive portfolio interface for GalaChain tokens.

For Developers

  • Easy Onboarding: Develop and deploy dApps on GalaChain with simplified processes.
  • Robust Tools: Utilize our powerful features to create innovative solutions on GalaChain.

FAQ

Is a new GalaChain wallet created when I login to GalaSwap with my Ethereum wallet for the first time?

Yes, GalaChain wallet creation is required when using the web3 wallet login option.

Can I log into Gala Games, Gala Music and Gala Film with the GalaChain wallet created via web wallet login?

No – The GalaChain wallet created in this way is only for GalaSwap. To use the core Gala platforms you will need to create an account.

If I log into GalaSwap using the same web3 wallet that is already linked to my Gala account, will it still create a new GalaChain wallet?

Yes. Even if you log into GalaSwap with a web3 wallet that is currently linked to your Gala account, a new GalaChain account will be created for use on GalaSwap.

Join the Revolution

The vision of GalaConnect is a leap forward in our mission to empower users and developers and expand the GalaChain ecosystem. By simplifying interactions and enhancing possibilities, we are paving the way for a more connected and decentralized future.

Join us as we embark on this exciting new journey as GalaSwap evolves into the new-and-improved GalaConnect. Together, we are creating a new paradigm of freedom and innovation in the blockchain world.

Get the new GalaSwap Starter Pack to start swapping right away!

Introducing a New Fee System on GalaChain

Introducing a New Fee System on GalaChain

Today we’re announcing a significant update to our ecosystem— the rollout of a new gas fee system on GalaChain. As part of our ongoing commitment to enhance the efficiency, security and sustainability of our network, we are implementing gas fees for various transactions and actions across our platforms, including Gala Games, Gala Music, Gala Film and GalaSwap.


What’s Changing?

As the result of approval of this recent Founder’s Node governance vote, fees will now be applied to the following actions on GalaChain:

GalaChainToken Transactions:

  • BatchFillTokenSwap
  • BatchMintToken
  • BurnTokens
  • FulfillMint
  • FulfillMintAllowance
  • MintToken
  • MintTokenWithAllowance
  • RequestTokenBridgeOut
  • RequestTokenSwap
  • TerminateTokenSwap
  • TransferToken

User Actions (1 $GALA fee per action):

  • Minting currency from mint allowance
  • Minting NFTs from mint allowance
  • Bridging out currency (note: existing fees apply, future dynamic fees are in development)
  • Sending currency
  • Sending NFTs
  • Paying for orders by transferring funds
  • Paying for orders by burning funds

Why Introduce Fees?

The implementation of transaction fees serves multiple objectives:

  1. Ecosystem Health: By increasing the amount of burnt $GALA, we aim to ensure the long-term health and sustainability of our ecosystem.
  2. Resource Allocation: Efficient allocation of network resources encourages optimal and responsible usage, crucial as we expand the ecosystem to include greater numbers of third party developers.
  3. Spam Prevention: Deterring spam and other undesired behaviors helps maintain the integrity of individual channels and the GalaChain network as a whole.
  4. Channel Founder Incentives: Founders of new GalaChain channels will receive a portion of fees collected within their channels.
  5. Node Operator Incentives: Providing ongoing benefits for node operators supports the decentralization and robustness of GalaChain.

Referral Incentive

As approved by the Gala Founder’s Node ecosystem in THIS VOTE, all $GALA burned as gas fees qualifies for a direct referral incentive reward. The direct referrer receives 8-10% of the burnt $GALA as a mint allowance, and the 2nd degree referrer (referrer of referrer) receives 2%.

Initial Launch and Future Rollout

The initial launch of the new system will apply only to transactions on the asset channel. This means many game NFTs and $MUSIC, which are not currently on the asset channel, will not have fees at first. However, it is essential to mention that fees for these channels are coming soon, ensuring a comprehensive rollout across the entire Gala ecosystem.

Aligning with Traditional Practices

While GalaChain is a permissioned blockchain and does not use miners like Ethereum, our fee structure borrows from traditional practices to streamline operations and provide ongoing opportunities for node operators. This hybrid approach allows us to maintain the benefits of decentralization while we continue to grow, ensuring the efficiency and reliability of our network.

Looking Ahead

Our commitment to innovation and community engagement remains steadfast as we continue to develop and refine our platform.

We appreciate your support and understanding as we implement these changes to enhance the Gala ecosystem. Together, we are building a more sustainable, efficient and secure future for all GalaChain users.

Stay tuned for more updates, and thank you for being a part of our journey!

Start GalaSwapping with Ease – Get this Starter Pack with a 95% $GALA Rebate

Start GalaSwapping with Ease – Get this Starter Pack with a 95% $GALA Rebate

If you haven’t started swapping tokens on GalaSwap yet, we’ve got the perfect incentive to get you into the action.

A recent GalaSwap update brought in a new Starter Pack item called the Trader Profile Badge.

After purchasing this NFT Badge for $1 using a credit card, users will instantly receive 95% of the purchase price back as $GALA, giving them a tidy little pile of tokens they can use to create or accept swaps.

While the NFT Badge has no utility or intrinsic value, we think you’ll get a lot of use out of the $GALA awarded as a rebate for the purchase.

Get the Trader Profile Badge NFT now

What Can You Do with GalaSwap?

  1. Create and Accept $GALA swaps – Every token in the GalaChain ecosystem can be swapped to and from $GALA. Create offers or fill offers swapping either to or from $GALA for any other ecosystem token, including the numerous project tokens that have been created by the community.
  2. Create Project Tokens – In just a few minutes, you can burn $GALA to create a brand new project token of your own on GalaChain. Once the Gala Founder’s Node operators (who get a portion of the token as an operator reward) approve your project token via governance vote, your token will be available on GalaSwap and it will be yours to distribute as you please.
  3. Collect $GSWAP – $GSWAP is the built-in reward token of GalaSwap, distributed daily to users who create and accept swaps.
  4. Transfer tokens – Using the Transfer interface, users can easily send or receive GalaChain tokens, including $GALA, $MUSIC or any other token held in a GalaChain wallet.

Start Swapping

Everyone is eligible to buy the Trader Profile Badge and receive the $GALA rebate. You’ll find a purchase option at the top of the GalaSwap page.

Watch the project token markets and get swapping on GalaSwap, where each swap only costs 1 $GALA to create or accept. This is the power of DeFi on GalaChain, delivering endless possibilities and rewards.

Login to GalaSwap now