What are Layer 2 scaling solutions?

"Before talking about Layer 2 (L2), we must give a brief overview of Layer 1 (L1). L1 blockchains are defined as the main chains like Ethereum, Solana, Avalanche, and Bitcoin to name a few. L2 is a solution that helps scale L1 blockchains by reducing the computational and storage burden on the main L1 chain. Most L2 solutions connect to an L1 solution and help increase transaction speeds and capacity by batching transactions. State channels and non-custodial side-chains (e.g. Plasma and Rollups) are the two main ways side-chains plan to help scale L1 chains like Ethereum."

-Harsharn Singh, Investment Associate @ Ember Fund

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