Layer 2 (L2) blockchains are protocols built on top of Layer 1 blockchains like Bitcoin or Ethereum to enhance scalability, privacy, and other characteristics of the underlying blockchain.
Here are some key points to understand about Layer 2 blockchains:
Enhanced Scalability: Layer 2 solutions aim to address the scalability limitations of Layer 1 blockchains by processing more transactions per second (TPS) to meet the increasing demands of users.
Types of Layer 2 Blockchains: Common Layer 2 solutions include state channels, sidechains, optimistic rollups, and zero-knowledge rollups. These solutions offer different approaches to improving the efficiency and performance of blockchain networks.
Efficient Processing: Layer 2 blockchains act as assistants that handle a significant portion of the workload off-chain, allowing for faster and more efficient transaction processing.
Decentralization and Security: Despite offloading transactions to Layer 2, maintaining decentralization and security remains crucial. Solutions like zk rollups ensure that users can engage in non-custodial activities without compromising security.
Layer 2 blockchains play a vital role in enhancing the overall performance and usability of blockchain networks, offering innovative solutions to optimize transaction processing and improve user experience.
