Popular blockchains get crowded fast. Every transaction competes for limited block space, driving fees up and slowing everything down. Layer 2 solutions exist to relieve that pressure by handling activity off-chain and settling only the essentials back on Layer 1. If you want a foundation for how the base chain works before scaling, explore How the Blockchain Works.
If you’ve explored the basics in What Exactly Is Crypto?, this section shows what happens when blockchains scale beyond their original design — and why new layers are needed. To compare how different blockchains respond to congestion, you can also look at the Crypto Ecosystems Quiz.
Layer 2s process transactions elsewhere — sometimes batching hundreds at once — then publish a summary or proof to the base chain. This lets networks become faster, cheaper, and more usable without replacing Layer 1 security. If you want to see how individual transactions behave before they’re batched, try the Crypto Transactions Quiz.
Rollups are the most common approach. Optimistic rollups assume transactions are valid unless challenged. ZK rollups use cryptographic proofs to show correctness instantly. Both dramatically reduce fees by compressing many transactions into one submission.
Layer 2s don’t compete with Layer 1; they depend on it. The main chain remains the source of truth — the final settlement layer. Layer 2s simply take over the heavy lifting so the base chain doesn’t grind to a halt during busy periods. For a practical view of how people use these networks, explore the Crypto Utility Quiz.
For a deeper look at how scaling affects demand and fees, explore: How Crypto Gets Its Price Tag and Crypto Scarcity & Demand.
Scaling also changes how people react to news. Outages, congestion spikes, or sudden fee surges can shift sentiment instantly. To see how headlines influence markets, try the Crypto Headline Quiz.
Understanding Layer 2s pairs naturally with understanding security and personal safety habits. Check out financial responsibility to strengthen your decision-making as you explore crypto ecosystems. For a deeper look at how wallets behave across networks, see How Crypto Wallets Work.
And while Layer 2s solve congestion, scams still target beginners — not blockchains. The breakdown of romance-crypto scams shows how emotional manipulation succeeds where code stays intact.
Once you understand how Layer 2s boost speed while keeping Layer 1 secure, the path to a scalable crypto future becomes clear.