Definition ∞ A Layer-2 scaling solution is a framework built on top of an existing blockchain, known as Layer-1, to enhance its transaction processing capacity and reduce fees. These solutions process transactions off the main chain and then periodically submit a summarized proof of these transactions back to Layer-1. Examples include rollups, sidechains, and state channels, all designed to alleviate network congestion. They significantly improve network throughput and efficiency.
Context ∞ Layer-2 scaling solutions are a central topic in cryptocurrency news, particularly concerning the Ethereum network, which faces scalability limitations. Debates often focus on the security trade-offs, decentralization levels, and interoperability of various Layer-2 technologies. The development and adoption of these solutions are critical for mainstream digital asset usage and the continued growth of decentralized applications.
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