# Background of adoption of Layer 2 solutions

In the past few years since the launch of Ethereum Mainnet, the majority of projects have been aiming to launch their own mainnet, starting with the ERC-20 token. This is because developers can exercise dominance and influence in various areas through the establishment of their own networks, increase corporate value through proof of technology and capital power, and create clear use cases of token. &#x20;

Until 2022, there was a justification for developing a faster and cheaper Layer 1 Mainnet due to Ethereum's high fees and low transaction throughput (TPS), but now, while inheriting Ethereum's high security, With the emergence of Layer 2 Scaling Solutions that are more than 100 times as cheap and fast, it is possible to build an Application Specific Layer that can focus on application services.

<table><thead><tr><th width="162.33333333333331">Category</th><th>Own Layer 1 Mainnet</th><th>Layer 2 Scaling Solution</th></tr></thead><tbody><tr><td>Use Case</td><td><p><strong>&#x3C;EVM Compatible></strong></p><p>Ethereum, BNB Chain, Avalanche, Fantom, Klaytn, Celo</p><p></p><p><strong>&#x3C;non-EVM Compatible></strong></p><p>Tron, Solana, Cosmos, Tezos, EOS, Waves, Conflux, Stacks, Aptos, Sui</p></td><td><p><strong>&#x3C;Generalized layer 2s></strong></p><p>Arbitrum, Optimism, Boba, Base</p><p></p><p><strong>&#x3C;Application specific layer 2s></strong></p><p>Loopring, zkSync, ZKSpace, Aztec</p></td></tr><tr><td>Advantage</td><td><ul><li>Available to build own network</li><li>Clear use case of Token(Use as a Native Token on the Mainnet)</li><li>Incresing corporate value by proof of mainnet technology and capital power</li><li>Gaining Voting Power in the various field as foundation, validator, grant and so on</li></ul></td><td><ul><li>Securing scalability(transaction speed &#x26; throughput) keeping Decentralization, Security</li><li>Providing advanced UX with Low fee &#x26; High TPS</li><li>Enables to operate in an Ethereum Dab ecosystem that is closely linked and interacting with each other</li><li>Gain a strong community (Ethereum)</li></ul></td></tr><tr><td>Disadvantage</td><td><ul><li>Isolation(silo effect) of ecosystems (dabs, tools, devs, communities, etc.)</li><li>Gas fees, additional utilities and added value other than governance must be created on own, but it is very difficult</li></ul></td><td><ul><li>Layer 2 is still an experimental technology in its early stages, and there are risks that cannot be expected</li><li>Use ETH, not self-issued tokens, for gas fees; self-issued tokens are primarily used as the governance token</li></ul></td></tr></tbody></table>

Because the most important value for a smart mobility platform is the interaction and connection between global community members, ecosystem participants, and application developers, Hwik Circle Layer(HCL) will focus to enhance user experience using layer 2 scaling solutions and expanding use cases rather than focusing on the core engineering of the base chain and will use OP Stack, a standardized open-source development software for building Layer 2 Blockchain.
