What Are Layer 2 Solutions?
Layer 2 solutions are protocols built on top of existing blockchains (Layer 1) to improve scalability and reduce transaction costs.
Why Layer 2 is Needed
Layer 1 blockchains like Ethereum face:
- High transaction fees during congestion
- Limited transactions per second
- Slow confirmation times
Types of Layer 2 Solutions
Rollups
Optimistic Rollups
- Assume transactions are valid
- Fraud proofs for disputes
- Examples: Optimism, Arbitrum
ZK-Rollups
- Use zero-knowledge proofs
- Faster finality
- Examples: zkSync, StarkNet
State Channels
Off-chain transactions with on-chain settlement (Lightning Network)
Sidechains
Independent blockchains connected to main chain (Polygon)
Benefits
- Lower transaction costs
- Faster confirmations
- Increased throughput
- Better user experience
Conclusion
Layer 2 solutions are essential for blockchain mass adoption, enabling fast and affordable transactions while maintaining security.
