How Do Layer-Two Solutions Impact Transaction Fees on the Main Chain? ▴ Learn

How Do Layer-Two Solutions Impact Transaction Fees on the Main Chain?

Layer-two (L2) solutions, such as the Lightning Network or rollups, process transactions off the main blockchain (Layer 1). By batching many L2 transactions into a single L1 transaction, they significantly reduce the overall demand for L1 block space.

This reduction in demand helps to lower the average transaction fee on the main chain, especially during periods of high congestion.

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