Layer 2 Solutions
Layer 2 solutions are secondary protocols or frameworks built on top of a blockchain's base layer (Layer 1) to improve scalability, reduce transaction costs, and increase throughput without compromising security. They achieve this by processing transactions off-chain or in a more efficient manner, then settling the final state on the main blockchain. Common types include rollups, state channels, sidechains, and plasma chains.
Developers should learn and use Layer 2 solutions when building decentralized applications (dApps) that require high transaction volumes, low fees, or fast confirmation times, such as in gaming, DeFi, or NFT marketplaces, as they address the scalability limitations of Layer 1 blockchains like Ethereum. They are essential for creating user-friendly and cost-effective applications while leveraging the security of the underlying blockchain.