Ethereum Layer 2 refers to solutions built on top of the Ethereum blockchain to enhance its scalability and efficiency. While Ethereum itself can handle a limited number of transactions per second, Layer 2 solutions aim to process more transactions off the main chain, reducing congestion and lowering fees.These solutions work by bundling multiple transactions together and then submitting them to the main Ethereum blockchain as a single transaction. This allows for faster processing times and improved user experience.Popular Layer 2 technologies include sidechains, rollups, and state channels. Each of these approaches has its own methods of achieving scalability and can cater to different types of applications, from decentralized finance to gaming.By alleviating the pressure on the main Ethereum network, Layer 2 solutions play a crucial role in supporting a broader range of users and applications, making the ecosystem more accessible and efficient. Overall, they are vital for Ethereum’s growth and adoption as a leading platform for smart contracts.