Layer 2 (L2)
Layer 2 refers to scaling systems built on top of Ethereum that execute transactions off-chain or in specialized environments while publishing data/proofs back #Ethereum #ETH #VirtualEthereumIndex
Layer 2 refers to scaling systems built on top of Ethereum that execute transactions off-chain or in specialized environments while publishing data/proofs back to Ethereum for security. L2s–especially rollups–offer lower fees and higher throughput, making Ethereum usable for mainstream apps like payments, gaming, social, and frequent DeFi trades. L2 adoption is now one of the most important indicators of Ethereum’s real-world growth because many users may “use Ethereum” without ever transacting on L1 directly. For institutions, L2s can support cheaper stablecoin settlement and tokenization workflows while still leveraging Ethereum’s settlement guarantees. In fee comparisons like ETH vs Solana, analysts increasingly compare L2 transaction costs and throughput rather than only L1. Long-tail keywords such as “best Ethereum L2,” “Ethereum rollup fees,” and “bridge to L2” reflect this shift to a layered Ethereum economy. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary