Layer Two Expansion

Definition ∞ Layer Two expansion refers to solutions built atop a main blockchain to enhance its scalability and transaction throughput. These solutions, such as rollups or state channels, process transactions off the main chain, then periodically settle or commit their aggregated results back to the primary layer. This approach significantly reduces congestion and transaction costs on the foundational blockchain. Layer Two expansion aims to make decentralized applications more practical and accessible for a wider user base.
Context ∞ The development and deployment of Layer Two expansion technologies are a primary focus for improving the usability of prominent blockchains like Ethereum. The current discussion revolves around the security guarantees, decentralization properties, and interoperability between different Layer Two solutions. Future efforts will likely concentrate on further optimization and seamless user experiences across these scaling protocols.