Layer 2 scaling solutions help blockchains like Ethereum process more activity

Layer 2 scaling solutions allow blockchains such as Ethereum to handle increased activity without processing every transaction directly on the base chain, addressing limited blockspace, rising fees, and user exclusion. The most important current designs are rollups, which process transactions off-chain, bundle them, and post data or proofs back to Ethereum for settlement, security, and verification, resulting in cheaper and faster transactions while maintaining a connection to Ethereum's trust foundation.