Layer two decentralized exchanges Loopring and DeversiFi are joining forces past forming a committee dedicated to promoting usage of layer 2 solutions, named "L2 Squared" or just 50².

Announced on Monday, the alliance wants to ease the transition for users into these higher performance on-chain exchanges. "As things stand, Loopring and DeversiFi are the first exchanges on Ethereum to harness Layer-2 solutions, using zkRollup and StarkEx's Validium respectively," explained Will Harborne, founder of DeversiFi. "However the much-needed migration to Layer-2 is non a simple one, and the network effects of Layer-1 composability are very strong which stand to slow down this ongoing transition."

Both Loopring and DeversiFi require a split up deposit transaction to enter their corresponding ecosystems. Though the funds are never in custody of the exchanges, this requirement still hampers usability and composability with other protocols.

The alliance will have several areas of responsibleness geared toward promoting layer two adoption. From a concern standpoint, it volition conduct educational initiatives to explain how the technology works and what kind of advantages it offers over normal Ethereum usage, as well every bit push button for more wallet integrations.

On a technical level, L2 Squared will piece of work on developing composability standards betwixt both layer one and layer two, and between different layer two systems. As of yet, most layer two solutions are isolated environments that cannot be joined without first going through Ethereum.

The brotherhood comes as the Ethereum roadmap formally incorporated a rollup-centric vision. Information sharding is expected to be available after a relatively brief evolution period in 2021, and past combining it with rollups the network may brainstorm to process thousands of transactions per 2d sooner than expected in the by.

Achieving frictionless composability and interoperability is the key to enabling the rollup-centric vision. While many DeFi DApps have pledged to utilise 1 or some other solution once available, some come across the potential fragmentation equally a major barrier toward adoption.