Layer 2 Fees

Definition ∞ Layer 2 fees are the transaction costs incurred when utilizing scaling solutions built atop a primary blockchain network. These solutions, often called Layer 2s, process transactions off the main chain to improve speed and reduce expense. The fees associated with Layer 2 operations are typically lower than those on the foundational Layer 1 network. They are designed to make decentralized applications more accessible.
Context ∞ The prominence of Layer 2 fees has grown significantly as blockchain networks, particularly Ethereum, face challenges with scalability and high transaction costs. These fees are a crucial factor for users and developers seeking efficient and economical participation in decentralized ecosystems. The ongoing development and adoption of Layer 2 solutions are vital for the continued growth of the digital asset space, aiming to provide a more practical user experience.