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How Do Layer 2 Solutions Aim to Reduce Smart Contract Gas Costs?

Layer 2 solutions, such as rollups (Optimistic and ZK), process smart contract transactions off the main blockchain (Layer 1) and then bundle or compress them into a single, smaller transaction that is posted back to Layer 1. This amortization of the Layer 1 gas cost across many Layer 2 transactions drastically reduces the effective gas fee for each individual smart contract interaction.

Why Are Layer-2 Solutions Being Developed to Address High Gas Fees?
How Do Layer 2 Solutions Reduce Mainnet Transaction Fees?
How Do Layer 2 Scaling Solutions like the Lightning Network Reduce Congestion on the Layer 1 Mempool?
Are the Fees for Block Trading Different from Public Exchange Fees?