Layer 2 Explained: How Ethereum Scaling Works

Ethereum is the world's programmable blockchain, but at peak demand it processes only ~15 transactions per second — far too slow and expensive for mainstream use. Layer 2 (L2) networks solve this by processing transactions off the main chain (Layer 1) and then posting a compressed proof back to Ethereum, inheriting its security while delivering near-instant, low-fee transactions.

The two dominant L2 designs are Optimistic Rollups (Arbitrum, Optimism) — which assume transactions are valid and only run fraud proofs when challenged — and ZK Rollups (zkSync, Starknet, Polygon zkEVM) — which generate a cryptographic validity proof for every batch. Browse the whitepaper explanations below to understand how each project builds on these foundations.

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