Layer 2 scaling solutions are techniques designed to increase the scalability of blockchain networks at a level above the core blockchain (Layer 1). Their aim is to increase transaction throughput and reduce traffic congestion. These enable faster and more cost-effective transactions by removing some processes outside of the main blockchain, examples being sidechains, state channels and plasma. These solutions increase the overall performance and efficiency of decentralized systems.

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Layer 2 scaling solutions are implemented on top of the core blockchain (Layer 1) to address scalability issues and improve transaction speed and cost-effectiveness. Let's discuss this in detail below. Basically in this case we can notice 4 main points-

1. Didechain.
2. State channel.
3. Plasma
4. Rollup.

Details-

Sidechains are independent blockchains connected to the main blockchain. Relieves congestion on the main chain as transactions can occur on the sidechain. Interoperability between sidechains and main chains allows assets to move seamlessly. A state channel creates a private channel outside the main blockchain that allows two or more participants to conduct multiple transactions within it. Here only the final result is recorded in the main chain. This stateful channel reduces the need to include each small transaction in the main blockchain, improves scalability and reduces fees.

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A framework that enables the creation of scalable decentralized applications (DApps) with their own blockchains is Plasma. These child chains periodically submit a summary of their transactions to the main blockchain to reduce the computational load on the parent chain. Rollup reduces the burden on the main chain while maintaining security. Solutions that involve processing transactions off-chain or on sidechains and then periodically submitting a summary or "rollup" to the main chain.

Simply put, these Layer 2 solutions aim to make transactions faster and more cost-efficient, increase scalability, and handle certain operations outside of the core blockchain. They provide a balance between security, scalability and decentralization in blockchain networks.

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So friends, that's it for today. How do you like my short discussion today ? I am ending here wishing everyone good health. All be well and stay healthy.