How Do Layer 2 Solutions Reduce Mainnet Transaction Fees?
Layer 2 solutions, such as Rollups (Optimistic or ZK), process transactions off the main blockchain (Layer 1) and then batch them into a single, compressed transaction that is submitted back to L1. This amortization of the L1 gas cost across hundreds or thousands of L2 transactions drastically reduces the per-user fee.
Glossar
Optimistic Rollups
Scalability ⎊ Optimistic Rollups represent a Layer 2 scaling solution for Ethereum, designed to enhance transaction throughput and reduce associated gas fees without compromising decentralization.
Layer 2 Solutions
Architecture ⎊ Layer 2 Solutions are off-chain protocols built atop a base settlement layer, designed to inherit its security while dramatically increasing transaction throughput and reducing latency, making them essential for high-frequency crypto derivatives trading.
Mainnet Transaction
Transaction ⎊ A mainnet transaction represents a state change recorded on the base layer of a blockchain, such as Ethereum.