How Do Layer 2 Solutions like the Lightning Network Address Block Space Limitations? ▴ Learn

How Do Layer 2 Solutions like the Lightning Network Address Block Space Limitations?

Layer 2 solutions move the bulk of transactions off the main blockchain (Layer 1) and onto a secondary layer. For example, the Lightning Network uses 'payment channels' for fast, low-cost transactions that only require two on-chain transactions (opening and closing the channel).

This significantly reduces the overall demand for limited Layer 1 block space.

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

Could a Network of Interconnected State Channels (E.g. Lightning Network) Support a Multilateral Derivatives Market?

How Do Layer 2 Solutions, like the Lightning Network, Aim to Reduce Transaction Fees?

How Does the Lightning Network Utilize the UTXO Model for Off-Chain Scaling?