HOW L2S ACTUALLY WORK

Summary from the TLDR Crypto newsletter

On an L1, all the network's nodes have to process transactions and store data onchain, which is an expensive process causing high transaction fees. L2s use cheaper data and batch transactions together to be executed by an offchain entity, allowing for hundreds more transactions per second than L1s. L2s submit transaction proofs secured by cryptography or staked assets to the L1 for settlement.