According to Binance, Layer 1 scaling prioritizes base-chain security and decentralization while increasing throughput more conservatively, which directly affects gas costs and settlement assurance for ETH users, source: Binance Academy. Binance explains that rollups bundle many transactions off-chain and post compressed data to Layer 1, aiming to lower fees and raise throughput while inheriting L1 security, which impacts execution costs and reliability for active traders, source: Binance Academy. Binance adds that sidechains run in parallel with their own consensus and rely on bridges to connect to the main chain, typically offering lower fees but with distinct security assumptions traders must price in, source: Binance Academy. Binance states that Optimistic rollups use fraud proofs and typically involve longer withdrawal times due to challenge periods, affecting capital mobility and settlement timing across venues, source: Binance Academy. Binance notes that ZK-rollups use validity proofs for faster finality and generally quicker withdrawals back to Layer 1, improving capital efficiency relative to long challenge windows, source: Binance Academy. Binance emphasizes that bridges and smart contracts introduce additional risk and costs when moving assets between Layer 1, rollups, and sidechains, which traders should factor into strategy execution and hedging, source: Binance Academy.