L2 Scaling

L2 Scaling is a technique that speeds up cryptocurrency transactions by processing them off the main blockchain (called Layer 1) before settling them back on it. Think of it like a express lane: instead of every transaction waiting in the main highway, some get bundled together and processed faster elsewhere, then recorded on the main chain. You'll hear about L2 Scaling when people discuss why certain crypto networks are slow or expensive—it's a popular solution to that problem. For example, if Bitcoin transactions are taking hours and costing $20 each, an L2 solution might let you do the same transaction in seconds for pennies. It matters to investors because faster, cheaper networks tend to attract more users and activity.