Types of Layer 2 Solutions

State Channels:

These allow two or more parties to conduct multiple transactions off-chain. The blockchain is only updated at the beginning and end of the transaction sequence, which is beneficial for applications requiring numerous rapid transactions between the same parties.


These are independent blockchains that run parallel to the main blockchain and have their own consensus mechanisms. They facilitate the transfer of assets between themselves and the main chain, potentially offering different features or optimizations.

Optimistic Rollups:

These bundle (or "roll up") multiple transactions into a single transaction on the main blockchain. They operate under the assumption that transactions are valid by default, with computation only occurring in the event of a dispute.

Zero-Knowledge Rollups:

Similar to optimistic rollups, but they use cryptographic proofs to validate transactions without revealing any underlying data. This enhances both privacy and efficiency.

Nested Blockchains:

These consist of a primary chain and secondary chains. The primary chain delegates tasks to the secondary chains, which then process transactions and report back. This structure allows for parallel processing and increased scalability.

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