Layer-2 scaling solution
Layer-2 scaling solution is a technique used to enhance the performance of blockchain networks by scaling the processing of transactions by moving some computationally intensive tasks off the main blockchain and onto other secondary ‘layer’ chains. This approach involves executing transactions in a separate blockchain network (or layer) that is anchored to the main blockchain. It aims to reduce the burden on the main chain so that it can process more transactions quickly, efficiently, and cost-effectively, making the overall blockchain network more robust and scalable.
Some of the most popular Layer-2 scaling solutions include sidechains, state channels, plasma chains, and rollups, which allow for faster transaction processing, lower transaction costs, and better scalability. These solutions help to address the scalability problem faced by blockchain systems that typically take longer to process transactions due to network congestion, as more users try to perform transactions. By using Layer-2 scaling solutions, blockchain networks aim to support a vast number of transactions and provide a faster experience for users without sacrificing security or decentralization.