An L2 scaling solution is a secondary framework or protocol built atop a primary blockchain, such as Ethereum, to enhance its transaction throughput and reduce associated costs. These solutions process transactions off the main chain and periodically submit aggregated proofs back to the main chain for final settlement. They address the scalability limitations of foundational blockchains, enabling wider adoption of decentralized applications. They are vital for network efficiency.
Context
L2 scaling solutions are a critical area of development and news in the blockchain ecosystem, as they are essential for improving the practical usability of decentralized networks. Reports often highlight new rollups, sidechains, or other L2 technologies launching or upgrading, along with their impact on transaction speeds and gas fees. The ongoing competition and technical advancements among these solutions shape the future capacity of digital asset networks. This technology is key to broader blockchain utility.
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