Layer 2 scaling solutions enable blockchains like Ethereum to handle increased transaction volume without requiring every activity to settle directly on the base chain. While Ethereum's main network provides security and decentralization, its limited blockspace drives up fees during periods of high demand, pricing out users. Rollups represent the most significant Layer 2 design currently in use. These systems process transactions off-chain, bundle them together, and post compressed data or cryptographic proofs back to Ethereum. This architecture reduces costs and increases speed while maintaining a trust connection to Ethereum's settlement and security foundation.