@bombbunue
Layer 2 solutions are protocols built on top of existing blockchain networks (like Ethereum) to enhance scalability and reduce transaction costs. They work by processing transactions off-chain or in a more efficient way, then settling the final results on the main blockchain. Examples include the Lightning Network for Bitcoin and rollups for Ethereum. By doing so, Layer 2 solutions help alleviate congestion on the main chain, enabling faster and cheaper transactions without sacrificing security. These solutions are crucial for blockchain networks to handle higher volumes of transactions, making them more suitable for widespread adoption in applications like gaming, DeFi, and microtransactions.
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