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Layer 2 Scaling Solutions Explained (Rollups, Plasma, Sidechains, Channels ANIMATED)Layer-2 solutions, like the Lightning Network, enhance Bitcoin by enabling fast, low-fee transactions through off-chain channels, providing. These layer-2, or L2 blockchain, solutions enable thousands of low-value transactions to be processed after validation on parallel blockchains, with records. One of the most popular Bitcoin layer 2 projects built on top of the Bitcoin blockchain is the sidechain protocol called The Liquid Network.