Ethereum Layer 2 solutions are protocols built on top of the Ethereum blockchain to improve its scalability and efficiency. They aim to address the limitations of Ethereum, particularly in terms of transaction speed and cost.These solutions work by processing transactions off the main Ethereum chain, then submitting the final results back to it. This reduces the load on the main network, allowing for faster and cheaper transactions.Common examples of Layer 2 solutions include rollups, sidechains, and state channels. Rollups batch multiple transactions into a single one, while sidechains operate parallel to the main chain, allowing for more flexible processing. State channels enable users to transact off-chain, settling the final outcome on the main chain later.Overall, Layer 2 solutions help enhance Ethereum’s performance, making it more efficient for various applications like decentralized finance (DeFi) and non-fungible tokens (NFTs). By reducing congestion and lowering fees, they contribute to a smoother user experience.