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Mode L2

Definition

Mode L2 refers to a Layer 2 scaling solution designed to improve the transaction capacity and speed of a base blockchain network. These solutions operate on top of an existing Layer 1 blockchain, processing transactions off-chain before settling them on the main chain. This architecture significantly reduces congestion and transaction fees on the primary network, enhancing overall network efficiency. Examples include rollups, sidechains, and state channels, each with distinct mechanisms for achieving scalability.