Layer 2 solutions are off-chain protocols that provide additional functionality and scalability to a blockchain network, without altering the underlying consensus mechanism. These solutions are designed to address the chain scale problem, which arises when a blockchain network is unable to process a sufficient number of transactions to meet the demand of its users.
The chain scale problem is a result of the inherent design of blockchain technology, which requires each node in the network to process every transaction. As the number of nodes and transactions on the network increase, the time and resources required to process transactions also increase, leading to slower transaction times and higher fees.
Layer 2 solutions provide an alternative to processing all transactions on the main blockchain. Instead, these solutions create separate channels or networks that operate off-chain but are still connected to the main blockchain. By processing transactions off-chain, layer 2 solutions can significantly increase the throughput of a blockchain network, while also reducing fees and improving user experience.
Read More: https://www.codezeros.com/blog/layer-2-blockchain-solutions
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