Blockchains like Ethereum may face scalability issues – high transaction costs and low processing speeds under heavy load. Layer 2 solutions are designed to address this problem:
How do they work? They process transactions off the main blockchain (Layer 1) and then periodically "send" aggregated data back to Layer 1, significantly reducing the load.
Examples: Rollups (Optimistic Rollups, ZK-Rollups), sidechains, and state channels.
Advantages: Increase throughput, lower fees, and improve user experience, making blockchain applications more accessible.
Layer 2 is the key to the mass adoption of blockchain and decentralized applications.
