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.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
