Layer 2

Layer 2 is a secondary framework built atop a blockchain's primary layer (Layer 1), aiming to improve scalability and efficiency. Layer 2 is a solution designed to enhance the scalability and efficiency of blockchain networks, particularly for decentralized applications (DApps) and smart contracts. Layer 2 solutions enable faster and more cost-effective transactions by processing some operations off-chain, while still relying on the security of the underlying blockchain. These solutions include technologies like sidechains, state channels, and plasma chains, which collectively address congestion and high fees on the main blockchain while expanding the capabilities of Web3 applications.

Technical details

Building on the concept of blockchain layers, Layer 2 solutions aim to alleviate the congestion and high fees associated with main blockchain networks. These solutions operate on top of existing blockchains, introducing mechanisms that enable faster and more cost-effective transactions. By moving certain processes off the main blockchain, Layer 2 solutions enhance the overall capacity and performance of decentralized systems. They have gained prominence as a way to address the scalability challenges faced by popular blockchain platforms like Ethereum, enabling DApps to offer improved user experiences and lower costs.