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What Is the Role of “Layer 2” Solutions in the Future of Transaction Fees?

L2 solutions process transactions off-chain, reducing the demand for scarce L1 block space and significantly lowering the average transaction fee.
Greeks.Live19.11.25

What Is the Role of “Layer 2” Solutions in the Future of Transaction Fees?

Layer 2 (L2) solutions, such as the Lightning Network and various rollups, process transactions off the main blockchain (Layer 1) and only periodically settle the final state back to L1. This dramatically increases transaction throughput and reduces the demand for scarce L1 block space.

By moving the majority of transactions off-chain, L2s significantly reduce the average transaction fee, ensuring the network remains affordable and scalable for daily use.

How Do Layer 2 Solutions like the Lightning Network Address Block Space Limitations?
How Is the Concept of Scarcity in Block Space Similar to the Supply Constraint on a Physical Commodity Future?
How Does the Block Size Limit Create Scarcity for Block Space?
What Is the Impact of Layer-2 Scaling Solutions on the Layer-1 Transaction Fee Market?

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