Ethereum Layer 2: A Simplified Overview
Ethereum Layer 2 projects, such as Optimism, Arbitrum, and zkSync, aim to increase transaction throughput and reduce costs while maintaining security and decentralization properties. L2 solutions operate atop the existing blockchain, allowing for off-chain processing and a more scalable approach. They offer lower transaction costs, improved transaction capacity, and maintained security. Types of L2 solutions include rollups, state channels, and plasma. Projects like Arbitrum, Optimism, and zkSync are pioneering the L2 space, aiming to improve Ethereum's efficiency and scalability.