Layer 2 solutions have significantly impacted the Ethereum network by enhancing scalability and reducing transaction costs. Rollups like Optimism and Arbitrum process transactions off-chain while leveraging Ethereum's security, enabling faster and cheaper transactions. This has alleviated network congestion, lowering gas fees and improving user experience, especially for DeFi and NFT applications. Layer 2 adoption has also attracted more users and developers, fostering ecosystem growth. However, challenges remain, such as fragmented liquidity across rollups and user onboarding complexities. While Ethereum's Layer 1 still handles critical security and consensus, Layer 2 solutions have become integral to scaling, making Ethereum more accessible and efficient. As adoption grows, they could drive mainstream use, though interoperability and centralization risks need attention to ensure long-term decentralization and security.