What Scaling Solutions Aim to Reduce the Impact of Network Congestion on Fees?
Scaling solutions, broadly categorized as Layer 2 (L2) and Layer 1 (L1) upgrades, aim to increase transaction throughput. L2 solutions like Rollups (Optimistic and ZK) process transactions off-chain and submit proof to the L1, drastically reducing the cost per transaction.
L1 upgrades, such as sharding, increase the base capacity of the main chain. Both methods reduce competition for the limited block space, thereby lowering fees.