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L2 Scaling

Definition

L2 Scaling, or Layer 2 scaling, refers to a collection of technologies and protocols built on top of a main blockchain, known as Layer 1, to increase its transaction throughput and reduce costs. These solutions process transactions off the main chain and periodically submit aggregated proofs back to Layer 1 for final settlement. Examples include rollups, sidechains, and state channels. This approach significantly enhances blockchain efficiency.