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Ethereum Layer Two

Definition

Ethereum Layer Two refers to scaling solutions built atop the main Ethereum blockchain to improve its transaction capacity and reduce costs. These protocols process transactions off the primary chain, then periodically submit aggregated proofs or data back to Ethereum for final settlement. Examples include rollups, sidechains, and state channels, each offering distinct approaches to scaling. Layer Two solutions address the mainnet’s limitations by offloading computational burden while inheriting its security guarantees.