Ethereum L2

Definition ∞ Ethereum L2 refers to Layer 2 scaling solutions built atop the Ethereum blockchain to enhance its transaction throughput and reduce gas fees. These solutions process transactions off the main Ethereum chain and then periodically settle them on Layer 1. Examples include rollups and sidechains, which aim to improve network efficiency and user experience. They are critical for Ethereum’s long-term scalability and broader adoption.
Context ∞ Ethereum L2 solutions are a central focus in cryptocurrency news, with frequent updates on new deployments, technological advancements, and increasing user adoption. A key discussion involves the trade-offs between different Layer 2 technologies regarding security, decentralization, and ease of use. Future developments include the continued maturation of these scaling solutions, further integration with decentralized applications, and efforts to achieve seamless interoperability across various Layer 2 networks.