Layer 2 scaling solutions tackle Ethereum's transaction speed and cost limitations

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Layer 2 networks are secondary scaling solutions designed to improve blockchain performance, operating alongside primary chains like Ethereum. They process transactions off the main chain to reduce fees and confirmation times while preserving security and decentralization. These solutions are essential for Ethereum to handle higher transaction volumes, supporting decentralized applications and games. Without Layer 2 scaling, Ethereum risks becoming too slow and expensive for widespread adoption in the decentralized economy.

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