One of the biggest complaints about the Ethereum network is the “Gas Fee”—the cost of doing a transaction. When the network is busy, these fees can skyrocket. Layer 2 (L2) solutions are independent blockchains built on top of Ethereum to solve this.
L2s use a technology called Rollups. They “roll up” hundreds of transactions into a single batch, process them off the main chain for a fraction of the cost, and then post the final result back to Ethereum. This allows users to enjoy the security of Ethereum while paying fees that are often less than a few cents. Popular L2s like Arbitrum and Optimism are now the primary hubs for everyday users and small-scale traders.