Ethereum’s Layer 2 solutions are set to thrive in 2025 as scalability becomes critical for Web3 adoption. Both Arbitrum and Optimism use Optimistic Rollups to process transactions off-chain, slashing costs while leveraging Ethereum’s security. Arbitrum’s edge lies in its multi-round fraud proofs and Nitro technology, achieving sub-second transaction finality and lower gas fees, ideal for high-frequency DeFi and NFT dApps. Its Stylus upgrade supports Rust and C++, expanding developer flexibility. Optimism’s single-round fraud proofs and Bedrock architecture prioritize simplicity, offering 2–4 second finality and near-EVM equivalence, easing dApp migration. However, Optimism’s fees can spike during disputes compared to Arbitrum’s optimized system.