Layer Solutions
The most famous layer 2.0 solution for Bitcoin is the Lightning Network. Effectively, what this does is create a surface layer with trusted third-party nodes that can integrate many transactions among themselves at various points before performing transactions in the actual Bitcoin network in a much more compact and digestible way. In a way, it's like using a hybrid between a central third-party off-chain solution as we just mentioned and a decentralized system like Bitcoin.
The Lightning Network can also help alleviate some of the problems in the Bitcoin blockchain network, but it is by no means a gold standard safe haven. Importantly, it should be noted that not all Lightning Network nodes are created equally or used similarly. This is because a node is only as powerful as the processing network inside. Therefore, the most important Lightning Network nodes are likely to be controlled by very large organizations that may or may not have an agenda of the actors that allow them into their networks. And of course this can have censorship issues that don't come with the regular Bitcoin blockchain. But the good news is that you will be able to control all your own funds on the network and transfer value very quickly at very high speeds.
All this said, the development of the Lightning Network is always a long way away. There were many believers who thought the Lightning network would make a huge developmental breakthrough in 2017, and yet we are here almost to 2021 without much attention to be paid yet. How many more years are needed for the technology to be both widely adopted and easily used by the Bitcoin community is an entirely separate question.
