Layer-2 Impact

Definition ∞ Layer-2 impact refers to the effects that scaling solutions built on top of a base blockchain have on its performance, usability, and economic model. These solutions, such as rollups or state channels, aim to increase transaction throughput and reduce fees without compromising the security of the underlying Layer-1. Their influence is measured by improved network efficiency and broader application accessibility. It addresses the scalability limitations of mainnets.
Context ∞ News concerning Layer-2 impact frequently discusses how these technologies are alleviating congestion and high gas fees on prominent blockchains like Ethereum. The adoption rates of various Layer-2 networks, their total value locked, and the migration of decentralized applications are key indicators. The long-term success of many digital assets and protocols relies heavily on the continued development and widespread use of effective Layer-2 solutions.