How do Layer 2 solutions like Arbitrum and Optimism enhance Ethereum’s scalability?

[kevin1]

A: Layer 2 (L2) networks process transactions off-chain while leveraging Ethereum’s security. Benefits include:

Lower fees: Gas costs drop dramatically, enabling micro-transactions and DeFi trades.

Faster confirmations: Batch processing reduces latency from minutes to seconds.

Composable protocols: L2 ecosystems maintain interoperability with Ethereum mainnet and other L2s via bridges.

Traders and developers use L2s to scale applications without sacrificing decentralization or security.

#Layer2 #EthereumScaling #DeFi

[Abdul Khan]

Layer 2s reduce gas fees and congestion by processing transactions off-chain before finalizing on Ethereum.

[Nahid Hossen]

Arbitrum and Optimism allow faster, cheaper transactions while maintaining Ethereum’s core security model.