Intermediate Blockchain & Web3
Q49 / 100

What is a "Layer 2" scaling solution in blockchain (e.g., for Ethereum)?

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Incorrect.

The correct answer is A) A separate protocol built on top of a base blockchain (Layer 1) that processes transactions off the main chain and periodically settles results back to it

A

Correct Answer

A separate protocol built on top of a base blockchain (Layer 1) that processes transactions off the main chain and periodically settles results back to it

Explanation

Layer 2 solutions (e.g., rollups, sidechains) handle transactions off the main chain to improve throughput and reduce fees, while inheriting security from the underlying Layer 1.

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