Layer-2 Infrastructure

Definition ∞ Layer-2 infrastructure refers to protocols and systems built on top of a primary blockchain, known as Layer-1, to enhance its scalability and efficiency. These solutions process transactions off the main chain, then settle them securely on Layer-1. They address the limitations of throughput and transaction costs inherent in many foundational blockchain networks. This infrastructure is crucial for widespread adoption.
Context ∞ Discussions surrounding Layer-2 infrastructure frequently appear in crypto news, particularly concerning network congestion and transaction fees on popular blockchains. The development and deployment of various Layer-2 solutions, such as rollups and sidechains, are critical for the long-term growth of decentralized applications. Market analysts closely follow the adoption rates and technical advancements within this sector.