Layer 2 Solutions Review: Which One Is the Best for Fast & Low-Cost Transactions?
As blockchain technology continues to evolve, scalability and transaction fees remain major concerns for users and developers alike. Layer 2 solutions have emerged as the answer, providing faster and more cost-effective transactions while maintaining the security of the underlying Layer 1 blockchain. With multiple Layer 2 solutions available, choosing the right one can be challenging.
This article reviews the best Layer 2 scaling solutions in 2025, comparing their transaction speeds, fees, security, and usability. Whether you’re an investor, developer, or everyday crypto user, this guide will help you find the best option.
What Are Layer 2 Solutions?
Layer 2 (L2) solutions are secondary frameworks or protocols built on top of Layer 1 blockchains like Ethereum, Bitcoin, or Binance Smart Chain. Their primary goal is to increase transaction throughput and reduce fees without compromising decentralization or security.
How Do Layer 2 Solutions Work?
- Processing transactions off-chain: Instead of executing every transaction on the main blockchain (Layer 1), L2 solutions process them off-chain or in parallel, reducing congestion.
- Aggregating multiple transactions: L2 solutions bundle many transactions into a single batch before submitting them to Layer 1, lowering gas costs.
- Ensuring security: Even though transactions occur off-chain, they are periodically settled and verified on Layer 1, ensuring security and trust.
Best Layer 2 Solutions in 2025
1. Arbitrum – Best for Ethereum Compatibility
- Transaction Speed: 40,000+ transactions per second (TPS)
- Fees: ~90% lower than Ethereum L1
- Security: Uses Ethereum’s mainnet for finality
- Key Features:
- Fully compatible with Ethereum smart contracts (EVM)
- Supports DeFi protocols like Uniswap, Aave, and Sushiswap
- Strong community and developer support
- Best For: Developers and projects looking for Ethereum compatibility with low fees.
2. Optimism – Best for Cost Savings
- Transaction Speed: 2,000+ TPS
- Fees: ~50-100x cheaper than Ethereum L1
- Security: Optimistic Rollups ensure security via fraud proofs
- Key Features:
- Reduces gas fees through batch processing
- Supports Ethereum dApps with minimal modifications
- Backed by major projects like Uniswap
- Best For: Cost-conscious users and DeFi traders.
3. Polygon (Matic) – Best for Multi-Chain Interoperability
- Transaction Speed: 65,000+ TPS
- Fees: Less than $0.01 per transaction
- Security: Uses PoS validators and Ethereum mainnet for settlement
- Key Features:
- Interoperability with Ethereum, BNB Chain, and other blockchains
- Strong NFT and gaming ecosystem
- Low transaction costs with high efficiency
- Best For: NFT and gaming projects seeking fast and low-cost transactions.
4. zkSync – Best for Zero-Knowledge Rollups
- Transaction Speed: 2,000+ TPS
- Fees: 10-50x lower than Ethereum L1
- Security: Uses Zero-Knowledge (ZK) proofs for enhanced security
- Key Features:
- Near-instant withdrawals and finality
- Supports EVM compatibility (zkSync 2.0)
- More scalable than Optimistic Rollups
- Best For: Users prioritizing security and scalability.
5. StarkNet – Best for Enterprise-Grade Scaling
- Transaction Speed: 3,000+ TPS (scalable)
- Fees: Up to 100x cheaper than Ethereum L1
- Security: Validity proofs ensure trustless security
- Key Features:
- Advanced Zero-Knowledge cryptography for data privacy
- High throughput and scalability for large applications
- Used by major projects like dYdX and Immutable X
- Best For: Enterprises and large-scale applications needing advanced scaling.
Comparing the Best Layer 2 Solutions
| Solution | Speed (TPS) | Fee Reduction | Security | Best Use Case |
|---|---|---|---|---|
| Arbitrum | 40,000+ | ~90% lower | High | Ethereum dApps |
| Optimism | 2,000+ | 50-100x lower | Medium | Cost savings |
| Polygon | 65,000+ | < $0.01 | Medium | Gaming & NFTs |
| zkSync | 2,000+ | 10-50x lower | High | Security focus |
| StarkNet | 3,000+ | Up to 100x | Very High | Enterprise scaling |
Which Layer 2 Solution Is Right for You?
- If you are a DeFi user, Arbitrum and Optimism offer the best compatibility and cost savings.
- If you are in the NFT or gaming space, Polygon provides excellent transaction speed and low fees.
- If you prioritize security and scalability, zkSync and StarkNet are ideal choices.
Potential Risks of Layer 2 Solutions
While Layer 2 solutions provide incredible benefits, they come with potential risks:
- Smart contract vulnerabilities: Since L2 solutions rely on smart contracts, bugs or exploits can pose risks.
- Centralization concerns: Some L2s have centralized components, impacting decentralization.
- Liquidity fragmentation: Assets may not move seamlessly between Layer 1 and Layer 2, causing liquidity fragmentation.
Conclusion: Are Layer 2 Solutions the Future?
Layer 2 solutions are revolutionizing blockchain scalability, making transactions faster and cheaper while maintaining security. Whether you’re an investor, developer, or everyday user, adopting L2 solutions can significantly enhance your blockchain experience.
Among the top contenders, Arbitrum and Optimism are excellent for Ethereum-based projects, Polygon shines in gaming and NFTs, while zkSync and StarkNet offer robust security. Choosing the right Layer 2 solution depends on your specific needs, security preferences, and cost considerations.
Disclaimer: This article is for informational purposes only and should not be
