The Need for Layer 2 Solutions1. Ethereum’s Scalability ProblemEthereum’s Proof-of-Work (PoW) mechanism, while secure and decentralized, can only handle around 15-30 transactions per second (TPS). As decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and gaming platforms grew, the Ethereum network became congested, causing high gas fees and slower transaction processing times. While the transition to Ethereum 2.0, which will implement Proof-of-Stake (PoS), promises to impr...

The Need for Layer 2 Solutions1. Ethereum’s Scalability ProblemEthereum’s Proof-of-Work (PoW) mechanism, while secure and decentralized, can only handle around 15-30 transactions per second (TPS). As decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and gaming platforms grew, the Ethereum network became congested, causing high gas fees and slower transaction processing times. While the transition to Ethereum 2.0, which will implement Proof-of-Stake (PoS), promises to impr...