L2TOPIC HUB
Layer 2 Solutions
Scaling solutions built on top of Ethereum.
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About Layer 2 Solutions
Layer 2 blockchains are scaling solutions built on top of base layer chains like Ethereum. They process transactions off the main chain and settle results back, dramatically reducing fees and increasing throughput. Major Layer 2s like Arbitrum, Optimism, and Base have become essential infrastructure for DeFi and consumer crypto applications, hosting billions in TVL while maintaining Ethereum security guarantees.
Key Terms to Know
Gas Fees
Transaction fees paid on blockchain networks.
Cryptocurrency
Digital currency secured by cryptography.
Liquidity Pool
Pool of tokens enabling decentralized trading.
Web3
Decentralized internet built on blockchain.
Proof of Stake
Consensus where validators stake coins.
Fundamental Analysis
Evaluating crypto by underlying value factors.