Layer2 Solutions

Definition ∞ Layer2 solutions are secondary protocols built on top of existing blockchain networks, such as Ethereum, to improve their scalability and efficiency. These solutions process transactions off the main blockchain, or Layer1, and periodically submit aggregated proofs or summaries back to the main chain. Examples include rollups, state channels, and sidechains, all designed to reduce transaction fees and increase transaction speed. Layer2 technologies are crucial for enabling broader adoption of decentralized applications and digital assets.
Context ∞ News concerning Layer2 solutions frequently addresses their deployment, adoption rates, and the ongoing competition among different scaling technologies. Debates often involve trade-offs between security, decentralization, and performance inherent in various Layer2 designs. The successful implementation and continued development of Layer2 solutions are vital for the long-term viability and growth of major blockchain ecosystems.