How do Layer 2 blockchains make money?

Okay, so you want to know how Layer 2 blockchains actually make money? Well, lemme tell you, it’s kind of clever, if you ask me.

Think of it like this: I’m a Layer 2, right? I’m basically like a wholesaler, but for Ethereum block space. Ethereum’s the main event, the OG. But it can get super congested and expensive to use, you know? Like trying to drive in downtown Manhattan during rush hour – forget about it!

So, what I do is, I buy up a big chunk of Ethereum’s block space in bulk. I’m getting a better rate, buying in volume. Then, I slice that big chunk up into smaller, more manageable, and way more affordable pieces for everyone else. See what I’m doing here?

It’s a pretty smart business model, really. I mean, people are clamoring for cheaper transactions. Who wants to pay an arm and a leg just to move some crypto around? Nobody! So I can offer them a sweet deal compared to going directly to Ethereum, and still make a healthy profit for myself. It’s a win-win, at least that’s what I tell myself, haha.

Honestly, being part of this whole Layer 2 thing, this scaling solution, is pretty exciting. Knowing I’m helping make Ethereum more accessible to everyone… well, it feels good! It’s like, “Hey, now even your grandma can afford to send you some ETH for your birthday!” (Okay, maybe not my grandma, she still uses checks, bless her heart).

Sometimes, though, gotta admit, it feels a little like… highway robbery? Just a tiny bit? Like, am I really providing that much value, or am I just profiting off Ethereum’s shortcomings? But hey, it’s a competitive market out there! And, at the end of the day, if I didn’t do it, someone else would, right? Plus, I’m helping to ease the congestion, and that’s gotta be a good thing, right? Right?!