Ethereum Layer 2 Scales Network with Lower Fees

Ethereum's success has led to an issue - as millions of users utilize the network at the same time, transaction competition results in high prices. In 2021, a single token swap could cost tens of dollars.

To address this problem, Layer 2 solutions for Ethereum were created. These networks conduct all processes off the main blockchain while still keeping the main blockchain responsible for the final decision.

Layer 2 networks are independent blockchains built on top of Ethereum to take advantage of its security. They have lower fees, typically less than a dollar, compared to Layer 1's few dollars when the network is busy.