Layer 2 refers to a secondary framework or protocol built on top of an existing blockchain system. The main purpose of these protocols is to solve the transaction speed and scaling challenges faced by large cryptocurrency networks.
More broadly, Layer 2 protocols create a secondary framework for transactions and processes on the blockchain that can occur independently of layer one. Therefore, these techniques can be called off-chain scaling solutions.
One of the advantages of using off-chain solutions is that the main chain does not need to undergo any structural changes because the second layer is added as an extra layer. Therefore, Layer 2 solutions have the potential to achieve high throughput without compromising network security.
This means that most of the work that would be performed by the main chain can be moved to layer 2. Therefore, while the main chain provides security, the second layer offers high throughput that can process hundreds or even thousands of transactions per second.
Bitcoin Lightning Network is one of the best-known Layer 2 solutions for Bitcoin. Like other layer 2 solutions, transaction packets from the main chain must be handled off-chain before passing this information back. Lightning Network also brings smart contracts to Bitcoin, which is a big improvement for the network in general.
Starkware is an Ethereum Layer 2 scaling solution provider. It has three products: StarkNet, StarEx and Cairo. Its best-known customers are DeversiFi, Immutable and dYdX platforms.
Arbitrum is a Layer 2 solution designed to increase the speed and scalability of Ethereum smart contracts and adds additional privacy features.
Matic
It aims to solve problems that affect the scalability of blockchains. Also, Matic has a certain tendency to scale Ethereum. Matic uses the Layer 2 scaling platform, a custom-designed scaling infrastructure for Ethereum built on top of a modified plasma version, and proof of stake side chains to provide a scaling solution that enables dApps and transactions to run on the Ethereum Blockchain. He uses his lair.