Layer Two Application

Definition ∞ A Layer Two Application operates on a secondary framework built atop an existing blockchain, or “Layer One,” to enhance its scalability and transaction throughput. These applications offload processing from the main chain, executing transactions more rapidly and at lower costs. Examples include rollups and sidechains, which bundle transactions or process them independently before settling on the primary blockchain. They aim to address the limitations of foundational blockchain networks.
Context ∞ The proliferation of Layer Two Applications is a dominant theme in blockchain development, driven by the need to scale decentralized networks for broader adoption. Debates often focus on the trade-offs between security, decentralization, and efficiency among different Layer Two solutions. A key future development involves greater interoperability between various Layer Two applications and seamless user experiences across these scaling solutions.