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@base has quickly gained traction in the Ethereum ecosystem. It excels in supporting any EVM-compatible codebase, making it easy for users to transition from Ethereum L1, Coinbase, and other interoperable chains. #base has a TVL of $342.67 million.

@Optimism is known for its previously mentioned optimistic rollups technology, which enhances scalability & transactions. It consolidates multiple transactions into a singular process on Ethereum's mainnet. The TVL for #optimism is over 1 billion.

@0xPolygonLabs uses networks of Ethereum-compatible PoS sidechains to process transactions in the Ethereum mainchain, reducing load and enabling faster, cheaper transactions. With over 37,000 apps on the platform, the TVL for #polygon is 1.2 billion

Now that we have an idea of what a Layer 2 is, lets take a look at a few popular Layer 2s in #cryptocurrency.

@arbitrum aims to provide users an easy-to-use platform for efficient and scalable Ethereum-compatible smart contracts. Using ETH for transaction fees, Arbitrum is 90-95% cheaper than Ethereum. There is over 2.3 billion TVL in #Arbitrum.

Sidechains link to a main chain like Bitcoin, allowing cryptocurrency transfer to a Layer 2 chain with third-party trust. They validate transactions for L1 blockchains, reducing network congestion.

The difference? ZK-Rollups excel in privacy and efficiency, but are technologically demanding. Optimistic Rollups are user-friendly but may have potential delays.

Rollups, a method to decrease the quantity of individual transactions on the main blockchain, come in two options: optimistic rollups and zero-knowledge rollups (ZK rollups).

ZK Rollup scales Ethereum by processing transactions off-chain and reducing on-chain data. It also boosts scalability and minimizes network congestion.

Optimistic rollup boosts blockchain throughput by aggregating transactions, reducing congestion, enabling interoperability, and improving transaction processing efficiency through off-chain processing and fraud-proof validation.

Layer 2 networks, like 'rollups' and 'sidechains', increase blockchain efficiency and speed by creating an independent framework for transactions and processes. They are "off-chain" scaling solutions.