How Do Layer 2 Scaling Solutions Address the Throughput Issue?
Layer 2 solutions, such as rollups (Optimistic and Zero-Knowledge), process transactions off the main blockchain (Layer 1) and then bundle the results to be submitted back to Layer 1 for final settlement. This significantly increases transaction throughput and reduces transaction fees on the main chain.
By handling the bulk of computation off-chain, Layer 2 solutions allow the main chain to focus on security and decentralization.