Layer Two Deployment

Definition ∞ Layer Two Deployment refers to the implementation of scaling solutions built on top of an existing blockchain, known as Layer One, to enhance transaction throughput and reduce fees. These solutions process transactions off the main chain, bundling them before submitting a single summary transaction back to Layer One for final settlement. Examples include rollups and sidechains, which aim to improve the efficiency and scalability of decentralized applications. This approach addresses limitations of primary blockchain networks.
Context ∞ Layer Two deployment is a central discussion point in the ongoing effort to scale blockchain networks, particularly Ethereum, to support widespread adoption of decentralized applications. The success of these deployments is critical for improving user experience and enabling new use cases that require high transaction volumes and low costs. Developers are continuously refining and launching new Layer Two protocols, with significant attention on their security models, interoperability, and overall network effect.