The Rise of Layer 2: Arbitrum, Optimism, and Base

Layer 2 solutions have become the primary way users interact with Ethereum. They inherit Ethereum's security while offering dramatically lower fees and faster transactions.

What Are Layer 2s?

L2s are blockchains that settle transactions on Ethereum (L1) but execute them off-chain. They batch hundreds of transactions into a single L1 proof, reducing per-transaction costs by 10-100x.

Arbitrum

The largest L2 by TVL and activity. Uses Optimistic Rollups with fraud proofs. Hosts major DeFi protocols (GMX, Camelot, Radiant). Arbitrum One for general use, Nova for gaming/social.

• TVL: Billions locked in DeFi protocols
• Nitro: Upgraded execution engine for better performance
• ARB token: Governance and ecosystem incentives

Optimism

Pioneer of Optimistic Rollups. Known for the OP Stack—modular framework for building custom L2s. Superchain vision: many interoperable L2s sharing infrastructure.

• OP Stack: Powers Base, Zora, and others
• Retroactive public goods funding: Unique governance model
• Superchain: Vision for interconnected L2 ecosystem

Base

Coinbase's L2, built on the OP Stack. No native token. Focuses on bringing the next billion users on-chain with a familiar UX and Coinbase integration.

• No token: Growth driven by utility, not speculation
• Coinbase integration: On-ramp from the largest US exchange
• Social apps: Friend.tech, Farcaster ecosystem

Using L2s with Ledger

Add L2 networks to Ledger via MetaMask or Rabby. Your Ledger signs transactions on any network—same security, lower fees. Bridge ETH from mainnet to L2s via official bridges.