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Given two of the primary hardware wallets, Ledger and Trezor, have roughly 5 million users, there would appear to be plenty of room for growth, since that there are at least 295 million crypto holders who may decide to add hardware wallets to their portfolio.

This validity proof is then posted to the main Ethereum blockchain, and Layer 2 transactions can’t be altered because they won’t comply with the validity proof. In order to bring transaction fees down, transactions could be handled off the main Ethereum blockchain (the Layer 1).