Layer Two Infrastructure

Definition ∞ Layer Two Infrastructure consists of auxiliary protocols and frameworks constructed atop a primary blockchain, known as Layer One, specifically designed to enhance its scalability and transaction throughput. This infrastructure processes transactions off the main chain, subsequently settling aggregated results back onto Layer One. It acts as an extension for increased capacity.
Context ∞ Layer Two solutions are critical for addressing the inherent scalability limitations of major blockchains, such as Ethereum, enabling faster and more cost-effective transactions for a wider array of decentralized applications. Ongoing advancements in this infrastructure are central to the future growth and widespread adoption of blockchain technology. News frequently reports on new Layer Two developments and their impact on network performance.