Layer 2 Scaling Solutions

Layer 2 scaling systems are intended to increase blockchain capacity without putting every transaction on Ethereum’s main network. Ethereum’s base chain is secure and decentralized but has limited blockspace, so rising demand can raise fees and exclude users. Layer 2s shift activity to systems around Ethereum while relying on it for settlement, security, data posting, or verification. Rollups are currently the most important Layer 2 design: they process transactions off-chain, bundle them, and post data or proofs back to Ethereum, making transactions cheaper and faster while retaining a link to Ethereum’s trust foundation.