Layer 2 Scaling Solutions Explained (Rollups, Plasma, Sidechains, Channels)

Summary

Ethereum can only process ~15 transactions per second. Layer 2 solutions like Optimistic Rollups, ZK-Rollups, Plasma, state channels, and sidechains all aim to solve this. This video explains how each approach works and their trade-offs.

Key Concepts

Things To Remember

• Layer 2 processes transactions off the main chain and batches them onto Layer 1.
• Optimistic Rollups assume transactions are valid and only verify if challenged.
• ZK-Rollups use zero-knowledge proofs to verify batches instantly.
• Different L2 solutions make different trade-offs between security, speed, and cost.

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