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.
Context ∞ L2 scaling is a dominant theme in blockchain development, addressing the limitations of Layer 1 networks like Ethereum in handling high transaction volumes. The current discussion centers on the trade-offs between different L2 approaches, such as optimistic versus zero-knowledge rollups, regarding security, decentralization, and developer experience. Future progress will involve greater interoperability among L2s and further optimization of their underlying cryptographic proofs. This ongoing work is vital for widespread blockchain adoption.