Layer two solutions are secondary frameworks or protocols built on top of an existing blockchain, known as the layer one, to enhance its scalability and efficiency. These solutions process transactions off the main chain, then periodically commit the results back to the layer one for final settlement. Examples include rollups, state channels, and sidechains. They significantly increase transaction throughput and reduce fees.
Context
Layer two solutions are a prominent topic in crypto news, particularly concerning the scalability challenges of major blockchains like Ethereum. Ongoing developments and upgrades focus on improving the security, decentralization, and user experience of these scaling technologies. The continued progress of layer two is crucial for supporting the growth of decentralized applications and increasing mainstream adoption.
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