Definition ∞ L2 infrastructure refers to the technologies and systems built on top of a base blockchain, known as Layer 1, to enhance its scalability and transaction throughput. These Layer 2 solutions process transactions off the main chain, then periodically settle them on Layer 1, reducing congestion and costs. Examples include rollups, sidechains, and state channels, all designed to improve network efficiency. This architecture is crucial for supporting widespread decentralized application usage.
Context ∞ The state of L2 infrastructure development is characterized by rapid innovation and increasing adoption, particularly for platforms like Ethereum. A key discussion involves the trade-offs between different L2 approaches concerning security, decentralization, and ease of use. A critical future development to watch for is the continued maturation of these solutions, their interoperability, and their role in enabling the next generation of decentralized applications and services.
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