Explainer: how layer-2 networks ease blockchain congestion
Layer 2 networks are built to help blockchains like Ethereum handle more activity without requiring every transaction to be processed on the main chain. They use the base chain for functions such as settlement, security, data publication, or verification, and rollups are a prominent approach.
Layer-2 networks are designed to let blockchains such as Ethereum support more activity than would be possible if every transaction had to be handled on the main chain. They do this by shifting some work to separate networks while still depending on the base chain.
The base chain can remain involved in settlement, security, data publication, or verification. Rollups are a prominent example of this approach, which aims to ease congestion while preserving core blockchain functions.
If layer-2 networks ease congestion, people and businesses that use blockchain services could see more practical capacity, and developers may gain new ways to design applications. The impact may vary by network and use case, and wider adoption could depend on usability, trust, and how well base-chain security is preserved.