Ethereum Layer 2 (L2) solutions are second layer protocols designed to solve the scalability problem of the Ethereum network. Ethereum has a number of technical restrictions that limit the ability of many users and projects to transact simultaneously. Therefore, Ethereum L2 solutions aim to offer faster transaction confirmations, lower costs, and better scalability.
Ethereum L2 solutions build on top of the network, creating a second layer separate from the main Ethereum network. These second layers enable faster and cheaper transactions while using the security and reliability of the Ethereum network to verify and record transactions. L2 solutions can use a number of different technologies and protocols, but generally adopt two basic approaches such as rollup and sidechain.
1. Rollup: Rollup solutions enable transactions to be processed on a separate chain from the main Ethereum network. In this chain, transactions are collected and combined and sent to the Ethereum mainnet as a single transaction. Rollup solutions use decentralized security mechanisms to maintain the security of the main Ethereum network while significantly reducing transaction costs and gas fees.
2. Sidechain: Sidechain solutions create a chain independent of the main Ethereum network. Transactions are processed on this chain and then transferred back to the main Ethereum network. Sidechain solutions use a security model independent of the main Ethereum network while offering faster transaction times and lower gas fees.
Ethereum L2 solutions play an important role in solving the scalability issues of the Ethereum network and providing more transaction capacity. These solutions aim to provide a better user experience for users and projects and open the Ethereum ecosystem to wider audiences.
