Layer 2 Solutions Are An Important Part Of How Ethereum Works, Lets See How They Work

Layer 2 solutions are becoming more important and more used everyday. There's many layer 2 blockchains active right now like Arbitrum, Optimism, Base, Loopring and many more.

These are important because they solve an important part of the Ethereum network, the high fees and its speed. Transactions in a Layer 2 are fast and cheap and there's a reason for that.

Layer 2 solutions are a different blockchain from Ethereum but they are also an extension of Ethereum. We can call these layer 2, rollups and this name describes exactly what is happening.

When an user does a transaction in a layer 2 blockchain, the transaction gets registered only in this seperate blockchain, but when enough transactions are done, the layer 2 will take hundreds of transactions and execute them as one in the Ethereum layer 1.

What happens is that the fee paid in the Ethereum layer 1 will be divided by everyone that made a transaction in this rollup, this way the fees paid by the users will be many times less than they are on Ethereum.

The security of this transactions are the same as the ones done on Ethereum, because reversing a transaction on layer 2 means that the same has to happen on layer 1, even if the security of the layer 2 solution is poor, Ethereum layer 1 will secure the transactions in an irreversible way.

That's why layer 2's are an extension of ETH, despite not being the same blockchain, eventually the transaction will be written in the ETH blockchain.