Layer 2 Security Solution

Impel's ISO 20022 API uses a Layer 2 security solution

What is a Layer 2 solution?

Ethereum's documentation describes Layer 2 as follows:

Layer 2 is a collective term for solutions designed to help scale your application by handling transactions off the Ethereum Mainnet (Layer 1) while taking advantage of the robust decentralized security model of Mainnet.

Layer 2 solutions are built on top of a Layer 1 blockchain DLT protocol (like the XDC Network) to utilize security on a private layer to protect the data from being made public on the public decentralized blockchain. It also lowers transaction costs by combining multiple off-chain transactions into a single message, and also increases transaction speed with the use of data rollups.

Benefits of Layer 2 solutions

Ethereum documentation lists the benefits:

  • Increased transactions per second greatly improve user experience, and reduce network congestion on Mainnet Ethereum

  • Transactions are rolled up into a single transaction to Mainnet Ethereum, reducing gas fees for users and making Ethereum more inclusive and accessible for people everywhere

  • Any updates to scalability should not be at the expense of decentralization or security – layer 2 builds on top of Ethereum

  • There are application specific layer 2 networks that bring their own set of efficiencies when working with assets at scale

Impel's ISO 20022 platform Layer 2 solution

Impel's API utilizes a tremendous strategy for sending ISO 20022 financial messages over the XDC Network through an API that permits advanced security and complex data handling. Furthermore, Impel's Layer 2 functionality allows financial messages to be sent without interruption or exposure to a third party.

Our ISO 20022 API's Layer 2 solution is a better fit for meeting the needs of financial institutions using our financial messaging platform, as we have a modified version of the state channels Layer 2 scaling pattern, allowing for a smarter, more secure solution.

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