$BNB
Layer 2 Scaling Solutions (e.g., Optimism, Arbitrum)
Definition:
Layer 2 (L2) solutions are technologies built on top of Layer 1 blockchains (like Ethereum) to improve scalability and reduce transaction costs without compromising security.
How It Works:
L2 solutions process transactions off the main blockchain (off-chain) and then submit a summary or proof back to Layer 1. This reduces congestion and fees.
Types:
Rollups: Bundle many transactions into one. Two main types:
Optimistic Rollups (e.g., Optimism, Arbitrum): Assume transactions are valid unless challenged.
ZK-Rollups (e.g., zkSync, StarkNet): Use cryptographic proofs to instantly verify transactions.
State Channels: Allow multiple transactions off-chain between parties, then settle on-chain.
Plasma: Create child chains for faster processing, occasionally anchoring to the main chain.
Benefits:
Lower fees
Faster transactions
Retain Ethereum-level security (especially for rollups)
Real-World Use:
Apps like Uniswap and Synthetix have integrated L2 to offer users cheaper, faster trading.
