Understanding L2

Before you understand what L2 is, it’s best to understand the motivation behind it.

The Ethereum blockchain network is not the only blockchain. There are other blockchain networks, such as BNB Smart Chain (BSC), Solana, and Tron. There are a lot of users on these networks. One of the things that attracts users from the Ethereum network to other networks is lower transaction fees. Creating transactions on Ethereum can cost $5-$100 depending on what kind of transactions you create (sending ETH, deploying a smart contract, swapping tokens) and whether there are a lot of transactions at the time you create transactions. Compare this to Solana where the transaction fee is less than one cent of the US Dollar.

Also, the maximum number of transactions that Ethereum can handle right now is around 20-30 transactions per second. This is still low compared to the amount of ride transactions Uber can handle in the US, which is 266 rides. Even if you compare it to another...