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How Do Layer 2 Scaling Solutions Address the Limitations of Smart Contracts?

They increase throughput and lower costs by executing transactions off-chain while maintaining Layer 1 security via mechanisms like rollups or sidechains.
Greeks.Live05.11.25

How Do Layer 2 Scaling Solutions Address the Limitations of Smart Contracts?

Layer 2 solutions move transaction execution off the main blockchain, or Layer 1, to a separate, more efficient environment. This reduces congestion on Layer 1, significantly lowering gas fees and increasing transaction throughput.

By handling the bulk of computations off-chain, they overcome the scalability limitations that hinder complex smart contract operations. This allows for faster and cheaper execution of decentralized applications (DApps) and financial primitives.

They inherit the security of the Layer 1 chain, typically through cryptographic proofs or fraud proofs.

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