Ethereum Layer 2
Ethereum Layer 2 refers to a set of scaling solutions built on top of the Ethereum blockchain (Layer 1) to improve transaction throughput, reduce costs, and enhance scalability while maintaining security and decentralization. These solutions process transactions off-chain or in parallel, then settle final results on the main Ethereum chain, enabling faster and cheaper operations for applications like DeFi, NFTs, and gaming. Common Layer 2 technologies include rollups (Optimistic and ZK), sidechains, and state channels.
Developers should learn and use Ethereum Layer 2 solutions when building decentralized applications (dApps) that require high transaction volumes, low fees, or real-time interactions, as Ethereum's base layer can be slow and expensive during peak usage. It's essential for scaling DeFi protocols, NFT marketplaces, and blockchain games to achieve mass adoption without compromising on security. By leveraging Layer 2, developers can offer better user experiences while still benefiting from Ethereum's robust ecosystem and network effects.