What Are ‘Layer 2’ Scaling Solutions for the EVM?
Layer 2 solutions are protocols built on top of the main Layer 1 blockchain (like Ethereum) to increase transaction throughput and reduce gas fees. They process transactions off-chain and then post the final state back to the Layer 1 chain for security and finality.
Examples include Rollups (Optimistic and ZK) and sidechains.
Glossar
Rollups
Technology ⎊ These are Layer 2 scaling solutions designed to process numerous off-chain transactions and then submit a single, compressed proof of their validity back to the main chain for final settlement.
Transaction Throughput
Meaning ⎊ Transaction throughput quantifies the maximum number of transactions a blockchain network can process and validate within a given unit of time, typically measured in transactions per second (TPS).
Scaling Solutions
Architecture ⎊ Scaling solutions within cryptocurrency, options trading, and financial derivatives frequently address systemic limitations in transaction throughput and computational capacity.