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How Do ‘Layer 2’ Solutions Address PoW Scalability Issues?

Layer 2 solutions process transactions off-chain and bundle them to increase throughput and reduce fees on Layer 1.
Greeks.Live17.11.25

How Do ‘Layer 2’ Solutions Address PoW Scalability Issues?

Layer 2 solutions, such as Lightning Network or rollups, process transactions off the main (Layer 1) PoW chain, bundling them together before submitting a single proof back to Layer 1. This significantly increases transaction throughput and reduces fees by offloading the bulk of the computational work from the main chain.

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