The first kind of layer two scaling solutions are rollups.

The first way to scale a base blockchain is to strengthen the base layer, but it is impossible to achieve this because of the blockchain trilemma. Since centralized networks can scale up to 100,000 transactions per second, improving decentralized solutions becomes crucial.

Major blockchains can only do a couple of transactions per second, but the need for transactions is almost infinite. Sources at W3G Capital Fund believe that realizing scalability in blockchain will be crucial to implementing a wide range of decentralized innovations. The approach is different from the one-sided approach, where developers try to make a blockchain as fast as possible to enable better transactions and user experience on the blockchain. Through this process, end-users can get fast speed and low fees without messing up the security and decentralization of the base-layer blockchain.

They help the underlying blockchain scale by handling the execution of smart contracts, DApps, and transactions on layer 2 and finalizing them on layer one. Layer 2 scaling solutions are a separate blockchain or network that sits on a layer 1 blockchain, such as Ethereum. Users are excited about layer 2 because they can play their favorite games and interact with an unlimited number of DeFi applications.

According to reports from W3G.Capital, the hype surrounding these projects is due to fees, which cost less than a couple of cents. Layer 2 scaling solutions in GameFi have been dubbed the best thing to happen on Ethereum, the planet’s most popular decentralized computer.

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