Layer 2

Layer 2 solutions are technologies built on top of existing blockchains to address scalability issues. Blockchains like Ethereum face congestion and high fees during peak demand, making Layer 2 essential for mass adoption. Techniques such as rollups, sidechains, and state channels move transactions off the main chain while maintaining security.

These solutions enable faster and cheaper transactions without compromising decentralization. For example, Optimistic Rollups and zk-Rollups significantly boost Ethereum’s throughput. Layer 2 scaling is critical for supporting high-demand applications such as DeFi, gaming, and the metaverse, paving the way for blockchain to reach billions of users.