A layer-2 solution is a secondary framework or protocol built on top of an existing blockchain network to enhance its scalability and transaction speed. These solutions process transactions off the main chain, bundling them before submitting a summary to the base layer, thereby reducing congestion and fees. Examples include state channels and rollups, which are critical for making blockchain applications more practical for widespread use. They aim to improve performance without compromising the security guarantees of the underlying blockchain.
Context
The development and adoption of layer-2 solutions are currently a primary focus for scaling prominent blockchains like Ethereum. Discussions frequently address the security models of different layer-2 architectures, their capacity for handling transaction volume, and the user experience for interacting with them. The competitive landscape among various layer-2 technologies is vigorous, with ongoing innovation aimed at achieving superior performance and broader applicability.
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