The Impact of Layer 2 Technologies on the Adoption and Security of Blockchain

Leonardo Maria De Rossi, Michel Avital, Rob Gleasure, Rebecca Solcia

Publikation: Bidrag til bog/antologi/rapportKonferencebidrag i proceedingsForskningpeer review


Numerous studies have raised concerns over the limited scalability of blockchain technologies and, in particular, Bitcoin. Layer 2 technologies have emerged as an advanced array of complementary innovations designed to solve this problem. Despite the growing optimism around layer 2 technologies, however, there is little evidence to show how they impact blockchain’s long-term success. This paper argues that the use and expansion of layer 2 technologies have a positive impact on the adoption and security levels of the underlying blockchain systems. Building on the Bitcoin and Lightning Network case, we use a time-series model based on 1,494 daily observations to demonstrate that the growing activity on the Lightning Network precipitates increased use and better security for Bitcoin. These results highlight the importance of layer 2 technologies for blockchain systems and suggest several further research avenues in this nascent domain of inquiry.
TitelProceedings of the 43rd International Conference on Information Systems (ICIS) : Digitization for the Next Generation
RedaktørerTilo Böhmann, Kai-Lung Hui, Viswanath Venkatesh
Antal sider17
UdgivelsesstedAtlanta, GA
ForlagAssociation for Information Systems. AIS Electronic Library (AISeL)
StatusUdgivet - 2022
BegivenhedThe 43rd International Conference on Information Systems: ICIS 2022: Digitization for the Next Generation - Copenhagen, Danmark
Varighed: 9 dec. 202214 dec. 2022
Konferencens nummer: 43


KonferenceThe 43rd International Conference on Information Systems: ICIS 2022
NavnProceedings of the International Conference on Information Systems


  • Blockchain
  • Layer 2 technologies
  • Bitcoin
  • Lightning Network
  • Adoption
  • Security