Layer 2 comprises secondary frameworks or protocols that operate on top of Layer 1 blockchains to increase transaction throughput and reduce fees. These solutions, such as payment channels and rollups, handle transactions off the main chain while still benefiting from its security.
Layer 2 technologies are critical for scaling blockchain networks to meet high demand without compromising decentralization.
They enable faster and more cost-effective transactions, paving the way for mass adoption of blockchain technology.
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