PART TWO: LAYER 2 CONSENSUS MECHANISMS: WHAT ARE THEY AND HOW DO THEY WORK?

ƒ Decentralized crypto exchanges (DEX) use smart contracts to secure peer-to-peer transactions

Stocks represent equity in a company, meaning

However, owning a cryptocurrency is much easier than owning a stock Stocks require investors to do more than just buy on an exchange In addition, shareholders must gain access to the paper version of their shares, which involves a lot of paperwork As a result, multiple third parties, including legal and financial advisors, brokers, account managers, etc , are all involved, dramatically increasing administrative costs

Owning cryptocurrency is much easier For example,

Robert Stone

ƒ Brokerage exchanges allow users to buy and sell popular cryptocurrencies and send them directly to their wallets�

ƒ Peer-to-peer platforms act as escrow services where users can buy and sell cryptos directly from one another�

Differences Between Crypto & Stocks

With that in mind, cryptocurrencies and stocks differ in numerous ways ast week we went into a bit of depth about what layer 2 consensus mechanisms are, what they do, and how they work. We talked about Optimistic Rollups, ZK Rollups, and Validiums. I then discussed a bit about the contrast between layer 1 and layer 2 chains. Today I will finish up by explaining some of the more common layer 2's and what they do. lower fees (gas). Here are a if you purchase coins or tokens on a DEX using a self-custodial wallet to which you hold the private keys, all you have to do is buy The process is slightly more complicated when trading on a CEX, however

Conversely, in crypto, you can start trading for under $100�