What is a Layer 2 solution Ethereum?

An independent blockchain acting in concert with Bitcoin or Ethereum , which retroactively became known as a “Layer 1 chain” or “main chain.” Layer 2 chains process new transactions faster while reducing the load on Layer 1 and typically taking much lower fees.

Uniswap v3 is now deployed on the Optimistic Ethereum (OΞ) network – a Layer 2 scaling solution that enables near-instant transaction finality and low transaction fees while preserving the security guarantees of Layer 1 Ethereum.

Layer 2 is a term used for solutions created to help scale an application by processing transactions off of the Ethereum Mainnet (layer 1) while still maintaining the same security measures and decentralization as the mainnet . Layer 2 solutions increase throughput (transaction speed) and reduce gas fees.8 Mar 2022

L2s process transactions on an Ethereum-connected blockchain (i.e., a sidechain.) Then they roll them into larger transactions (or rollup blocks.) The rollup block is sent to Ethereum in one transaction rather than many.31 Ara 2021