Supporters of Bitcoin Layer 2 (L2) solutions argue that they can enhance Bitcoin’s scalability, security, and growth potential. First, L2 solutions are seen as necessary to reduce transaction fees on Bitcoin, especially in light of recent network congestion from innovations like Inscriptions and BRC-20 tokens, which have driven fees up. L2 options like Rollups and Sidechains can help manage network activity more affordably, just as Ethereum’s L2 Rollups decreased fees by around 90% following ...

Supporters of Bitcoin Layer 2 (L2) solutions argue that they can enhance Bitcoin’s scalability, security, and growth potential. First, L2 solutions are seen as necessary to reduce transaction fees on Bitcoin, especially in light of recent network congestion from innovations like Inscriptions and BRC-20 tokens, which have driven fees up. L2 options like Rollups and Sidechains can help manage network activity more affordably, just as Ethereum’s L2 Rollups decreased fees by around 90% following ...