The main problem of many blockchains (Layer 1) is scalability: they can become slow and expensive with a large number of transactions. This is where Layer 2 solutions come to the rescue! These are add-ons over the base blockchain that process transactions off the main network and then write the final result back to Layer 1.

Examples: Lightning Network (for Bitcoin), Optimistic Rollups and ZK-Rollups (for Ethereum).

Advantages: Significantly increase transaction speed, reduce fees, and improve overall network throughput, making blockchain more user-friendly for mass adoption.

#Layer2 #OptimisticRollups #ZKRollups #LightningNetwork #Binance