Blockchain networks are often divided into layers, with layer-1 being the blockchain itself and layer-2 networks providing additional infrastructure on top of that. Layer-2 networks are used to address scalability issues like transaction costs and congestion by using various solutions such as sidechains and layer-2 rollups.
The most popular layer-2 networks built on Ethereum include Base, Decision, Polygon, Optimism, Scroll, and Blast. Ethereum co-founder Vitalik Buterin hopes to use layer-2 solutions to increase the blockchain’s capacity to handle over 100,000 transactions per second. Layer-2 networks are also being developed for other blockchains like Bitcoin and Solana.
