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Layer 2 Networks

How Ethereum scaling solutions like Arbitrum, Optimism, and Base work to reduce fees and increase throughput.

Layer 2 Networks

Layer 2 (L2) networks are protocols built on top of a base blockchain (Layer 1) to improve scalability without sacrificing security. They process transactions off-chain and periodically submit compressed proofs back to the main chain.

Types of L2s

  • Optimistic Rollups: Assume transactions are valid by default, with a fraud-proof window. Examples: Arbitrum, Optimism, Base.
  • ZK Rollups: Use zero-knowledge proofs to cryptographically prove validity of all transactions. Examples: zkSync, StarkNet, Polygon zkEVM.
  • State Channels: Off-chain channels for high-frequency bilateral transactions. Example: Bitcoin Lightning Network.
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⚠ Disclaimer: This guide is for educational and informational purposes only. It does not constitute financial, investment, legal, or tax advice. Cryptocurrency markets are highly volatile. Always conduct your own research and consult qualified professionals before making financial decisions.