The rise of decentralized applications (dApps) on the Ethereum network has led to congestion and high fees, prompting the exploration of Layer 2 solutions. These solutions, like Plasma, Rollups, State Channels, and Sidechains, aim to enhance scalability and reduce transaction costs. While offering increased speed and scalability, Layer 2 solutions require trust, bidirectional communication, and setup complexity, posing challenges alongside their benefits.