What is an Altilik? Understanding Decentralized Exchanges on Layer 2 Scaling Solutions

Altilik is a term used in the context of cryptocurrency and blockchain technology. It refers to a type of decentralized exchange (DEX) that operates on top of a layer 2 scaling solution, such as Lightning Network or Loopring.

In simple terms, an altilik is a decentralized exchange that uses a layer 2 scaling solution to increase the scalability and performance of the exchange, allowing for faster and cheaper transactions. This is achieved by offloading some of the workload from the base blockchain to a separate layer 2 network, which can handle a higher volume of transactions more efficiently.

The name "altilik" comes from the idea of altitude, as in height or elevation, and the word "like," suggesting that these exchanges are like traditional centralized exchanges but with the added benefits of decentralization and scalability. The term was coined by the team behind Loopring, one of the most popular layer 2 scaling solutions for Ethereum.

Altilik exchanges offer several advantages over traditional decentralized exchanges (DEXs), including faster transaction speeds, lower fees, and improved user experience. They also provide a more secure and private way to trade cryptocurrencies, as all transactions are settled on-chain and are not subject to the risks of centralized control or data breaches.