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Layer 2 Scaling Solutions: Complete Guide to Rollups

Understand Layer 2 scaling on Ethereum. Compare Arbitrum, Optimism, Base, zkSync, and other rollups. Learn how they work and which to use.

FCN Team
6 min read

Ethereum processes about 15-30 transactions per second. Layer 2 (L2) solutions scale this to thousands of TPS while inheriting Ethereum's security. This guide explains how L2s work and which to use.

The Scaling Problem

Ethereum's Bottleneck

  • ~15-30 transactions per second
  • During high demand, fees spike to $50-100+ per transaction
  • Makes DeFi inaccessible for smaller users
  • Limits mainstream adoption

The Solution: Layer 2

L2s process transactions off-chain but post data to Ethereum:
  • 100-1000x more transactions
  • 10-100x lower fees
  • Ethereum-grade security
  • Same developer tools

Types of Layer 2s

Rollups

Bundle transactions and post compressed data to Ethereum:

TypeSecurity ModelFinalityEVM Compatibility
OptimisticFraud proofs~7 daysHigh
ZKValidity proofsMinutesVaries

Optimistic Rollups

How they work:

  • Transactions processed off-chain
  • Batch posted to Ethereum
  • Assumed valid (optimistic)
  • 7-day challenge period for disputes
  • Anyone can submit fraud proof if invalid
  • Pros:

    • EVM equivalent (easy to port dApps)
    • Mature technology
    • Lower computational overhead
    Cons:
    • 7-day withdrawal period
    • Fraud proof gas costs

    ZK Rollups

    How they work:

  • Transactions processed off-chain
  • Zero-knowledge proof generated
  • Proof + data posted to Ethereum
  • Proof mathematically verifies validity
  • Instant finality once verified
  • Pros:

    • Fast finality
    • No challenge period
    • Mathematical security guarantees
    Cons:
    • Complex proof generation
    • Higher computational costs
    • Varying EVM compatibility

    Major L2s Compared

    Arbitrum

    Overview:

    • Largest L2 by TVL (~$10B+)
    • Optimistic rollup
    • Nitro technology stack
    Ecosystem:
    • GMX (perpetuals)
    • Radiant Capital (lending)
    • Camelot (DEX)
    • Pendle (yield)
    Specs:
    MetricValue
    TPS~40,000
    Avg Fee$0.10-0.50
    Withdrawal7 days
    TokenARB

    Optimism

    Overview:

    • Second-largest optimistic rollup
    • OP Stack powers multiple chains
    • Strong focus on governance
    Ecosystem:
    • Velodrome (DEX)
    • Synthetix (derivatives)
    • Aave (lending)
    OP Stack Chains:
    • Base (Coinbase)
    • Zora (NFTs)
    • Mode (DeFi)
    • Worldcoin
    Specs:
    MetricValue
    TPS~4,000
    Avg Fee$0.10-0.50
    Withdrawal7 days
    TokenOP

    Base

    Overview:

    • Built by Coinbase
    • Uses OP Stack
    • No native token (uses ETH)
    Ecosystem:
    • Aerodrome (DEX)
    • Friend.tech (social)
    • Growing DeFi
    Specs:
    MetricValue
    TPS~4,000
    Avg Fee$0.05-0.20
    Withdrawal7 days
    TokenNone (ETH)

    zkSync Era

    Overview:

    • ZK rollup by Matter Labs
    • Growing ecosystem
    • Native account abstraction
    Ecosystem:
    • SyncSwap (DEX)
    • Maverick (DEX)
    • Growing DeFi
    Specs:
    MetricValue
    TPS~100+
    Avg Fee$0.10-0.30
    FinalityMinutes
    TokenZK

    StarkNet

    Overview:

    • ZK rollup using STARK proofs
    • Cairo programming language
    • Different EVM approach
    Ecosystem:
    • AVNU (aggregator)
    • Ekubo (DEX)
    • Growing
    Specs:
    MetricValue
    TPS~100+
    Avg Fee$0.10-0.30
    FinalityMinutes
    TokenSTRK

    Polygon zkEVM

    Overview:

    • ZK rollup from Polygon
    • Type 2 EVM equivalent
    • Part of Polygon ecosystem
    Specs:
    MetricValue
    TPS~100+
    Avg Fee$0.05-0.20
    FinalityMinutes
    TokenPOL

    How to Use Layer 2s

    Bridging Assets

    Native Bridge (Most Secure):

  • Visit official bridge (bridge.arbitrum.io)
  • Connect wallet
  • Select asset and amount
  • Approve and bridge
  • Wait for confirmation
  • Third-Party Bridges (Faster):

    • Across Protocol
    • Stargate
    • Hop Protocol
    • Synapse
    Fast Withdrawals: Skip 7-day wait using:
    • CEX deposits (Coinbase, Kraken accept L2 directly)
    • Third-party bridges
    • Liquidity providers

    Setting Up Your Wallet

    Add L2 Network to MetaMask:

    NetworkChain IDRPC
    Arbitrum42161https://arb1.arbitrum.io/rpc
    Optimism10https://mainnet.optimism.io
    Base8453https://mainnet.base.org
    zkSync324https://mainnet.era.zksync.io
    Or use Chainlist.org to add with one click.

    Choosing the Right L2

    Decision Matrix

    Use CaseRecommended L2Why
    DeFi tradingArbitrumDeepest liquidity
    Low feesBaseLowest average fees
    DEX aggregationArbitrum/OPMost protocols
    NFTsBase/ZoraStrong NFT focus
    Building dAppsArbitrumMost mature
    Privacy focuszkSyncZK technology

    By Experience Level

    Beginners:

    • Start with Base (Coinbase onramp)
    • Or Arbitrum (most activity)
    Intermediate:
    • Multi-chain approach
    • Bridge based on opportunities
    Advanced:
    • ZK rollups for cutting edge
    • Airdrop farming across L2s

    L2 Fees Compared

    Sample Transaction Costs (2026)

    TransactionEthereumArbitrumBasezkSync
    ETH transfer$2-10$0.10$0.05$0.15
    Token swap$10-50$0.30$0.15$0.25
    NFT mint$20-100$0.50$0.20$0.40
    LP deposit$30-150$0.60$0.25$0.50
    Fees vary with network congestion

    Security Considerations

    Rollup Security

    Shared Security: L2s inherit Ethereum's security but have additional considerations:

    • Sequencer risk: Centralized sequencing (being decentralized)
    • Upgrade risk: Contracts can be upgraded
    • Bridge risk: Bridges are attack targets

    Risk Ratings (L2Beat)

    L2StageMeaning
    ArbitrumStage 1Training wheels
    OptimismStage 1Training wheels
    BaseStage 0Full training wheels
    zkSyncStage 0Full training wheels
    Check L2Beat.com for current ratings

    Best Practices

    • Check L2Beat risk assessment
    • Start with small amounts
    • Diversify across L2s
    • Use official bridges when possible
    • Monitor protocol updates

    Future of L2s

    Danksharding (EIP-4844)

    • Proto-danksharding live
    • 10x cheaper L2 fees
    • "Blobs" for rollup data

    Decentralized Sequencers

    • Shared sequencing
    • Based rollups
    • Reduces centralization risk

    Cross-L2 Interoperability

    • Instant bridging
    • Unified liquidity
    • Chain abstraction

    Conclusion

    Layer 2s make Ethereum accessible to everyone. Whether you choose Arbitrum for its ecosystem, Base for low fees, or zkSync for cutting-edge tech, you'll enjoy the benefits of Ethereum with a fraction of the cost.

    Follow L2 developments on Free Crypto News.

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    FCN Team

    The Free Crypto News editorial team covering the latest in cryptocurrency and blockchain.

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