With the rise of decentralized applications (dApps) and blockchain-based solutions, the need for scalable and efficient infrastructure for blockchain networks has become increasingly important. Unfortunately, many blockchain networks, such as Ethereum, have been limited in their scalability due to bottlenecks at the layer 1 or the base layer of the network. Layer 2 scaling solutions have been proposed as a way to overcome these bottlenecks and provide the necessary infrastructure for blockchain-based systems to reach their full potential.

What is a Layer 2 Scaling Solution?

Layer 2 scaling solutions build upon the existing base layer or layer 1 of a blockchain network. Essentially, they create a parallel network on top of the existing network that can process transactions more quickly and efficiently. This additional layer enables more transactions to be processed without overburdening the base layer of the network, ultimately enhancing overall network performance while reducing gas costs.

One type of Layer 2 scaling solution that has been garnering attention is the use of sidechains. Sidechains are an offshoot or a secondary chain that runs parallel to the main blockchain. They allow for faster processing of transactions by managing them independently from the main network, which reduces the burden on the mainchain.

Another type of Layer 2 scaling solution is the use of state channels. State channels are similar to sidechains in that they allow for the processing of transactions off-chain, thus reducing the processing burden on the main blockchain. State channels enable these transactions to be verified and settled later on the main blockchain, without the need to rely on it for every single transaction.

The Benefits of Using Layer 2 Scaling Solutions

Layer 2 scaling solutions provide several benefits for blockchain networks. First and foremost, they enable increased scalability for the network. By offloading the processing burden of transactions to additional layers, blockchain networks can handle significantly more transaction volumes.

Secondly, layer 2 scaling solutions improve the speed of transactions processed on a network. With the processing of transactions occurring off-chain, they can be completed much faster than transactions that rely on the mainchain.

Lastly, Layer 2 scaling solutions help to reduce the gas costs associated with processing transactions on the network. The reduction in processing costs makes the use of the network and the application built on it more economically feasible, thus driving increased adoption.


Layer 2 scaling solutions provide a promising way to move beyond the bottlenecks of layer 1 blockchain networks. They can offer faster transaction processing times, increased scalability, and reduced gas costs, making blockchain-based systems more accessible and affordable for developers and business alike. As the blockchain industry continues to mature, we can expect to see more layer 2 solutions being developed and adopted, ultimately helping to pave the way for mainstream adoption and usage of blockchain applications.