How Ethereum staking works
Validators lock up ether to help secure the network and earn rewards, and they can lose part of it for breaking the rules.
What layer 2 networks do
They process transactions off the main Ethereum chain, then post the results back, which can make using Ethereum cheaper.
The idea
Ethereum’s main network has limited capacity. Layer 2 networks handle transactions separately, bundle them together and record the results on Ethereum. Spreading that cost across many users can lower fees.
Two main designs
Optimistic rollups assume batches are valid unless someone challenges them. Zero-knowledge rollups publish a cryptographic proof that the batch is valid. They make different trade-offs on complexity and withdrawal time.
What to check
- Who can upgrade or pause the network
- How long withdrawals take
- Whether the bridge you are using is the official one
Sources
[The Editor links primary sources here before publication.]
Disclosures
[AI use, holdings and commercial relationships are shown here.]