What are Layer 2 Blockchains?
Layer 2 blockchains are secondary frameworks or protocols built on top of existing Layer 1 blockchains to improve scalability and reduce transaction costs. Tools and services in this category include rollups, sidechains, state channels, and plasma chains that process transactions off the main chain while maintaining security through the underlying Layer 1. These solutions target developers and product teams aiming to build scalable decentralized applications (dapps) that require higher throughput and lower latency than what Layer 1 blockchains can provide natively. Key characteristics of Layer 2 tools include faster transaction finality, reduced gas fees, and compatibility with Layer 1 security guarantees. Subcategories often include optimistic rollups, zero-knowledge rollups, and sidechains. Developers should explore Layer 2 tools when their applications face performance bottlenecks or cost constraints on the base blockchain and need to enhance user experience without compromising decentralization.
