Definition ∞ Layer two throughput quantifies the number of transactions per second that a secondary blockchain network can process. This metric indicates the efficiency and capacity of scaling solutions built atop a base layer blockchain. Higher throughput signifies improved network performance and reduced congestion for users. It directly addresses the limitations of the underlying primary chain.
Context ∞ Layer two throughput is a central performance indicator frequently cited in crypto news when comparing different scaling solutions like rollups or sidechains. Reports often highlight advancements in throughput as projects strive to meet the demands of widespread adoption. Its improvement is critical for making decentralized applications more practical and cost-effective.