Layer 2 Explained: Scaling Crypto with Ethereum Sidechains and Rollups

When you trade crypto on Ethereum, you’re often stuck waiting minutes for a transaction and paying $10 or more in fees. That’s where Layer 2, a set of technologies built on top of Ethereum to handle transactions faster and cheaper. Also known as scaling solutions, it lets users swap tokens, stake, or play games without drowning in gas fees. Think of it like adding express lanes to a crowded highway—same road, but way less traffic.

Most Layer 2, a set of technologies built on top of Ethereum to handle transactions faster and cheaper. Also known as scaling solutions, it lets users swap tokens, stake, or play games without drowning in gas fees. solutions fall into two camps: rollups, systems that bundle hundreds of transactions into one single proof sent back to Ethereum, and sidechains, independent blockchains that connect to Ethereum but run their own rules. Rollups like Optimism and Arbitrum keep everything secure by anchoring to Ethereum’s main chain. Sidechains like Polygon PoS trade some security for speed, letting apps run with lower costs but less direct protection from Ethereum’s network.

You’ll see Layer 2 everywhere now. Uniswap v2 on Base? That’s a Layer 2. PartySwap working across Ethereum, Avalanche, and Polygon? That’s cross-chain Layer 2 magic. Even meme coins like SCRAT or BELLE that claim to be on Solana are riding the same idea—move fast, stay cheap. But not all Layer 2s are equal. Some have real users and liquidity. Others? Zero volume, dead websites, and no audits. That’s why DexViews checks every platform: not all speed is safe.

Layer 2 isn’t just about saving money. It’s about making crypto usable. If you’re buying Bitcoin on CoinCorner, trading on DIFX, or checking out a new airdrop like ASPO World, you’re probably using a Layer 2 behind the scenes. The best ones let you trade without thinking about fees. The worst ones look like real platforms but vanish when you try to withdraw. This collection shows you which Layer 2s work, which are scams, and how to tell the difference before you send your funds.

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What Are State Channels in Blockchain? A Simple Breakdown

State channels let you make instant, low-cost transactions off the main blockchain by locking funds in a smart contract and settling only the final state. Used in Lightning Network and Raiden, they solve blockchain scaling for frequent, small payments.