Level 2 chains don’t generally put everything back on the main chain. Lightning, for example, is peer to peer, and then only does net settlement to the main blo

Level 2 chains don’t generally put everything back on the main chain. Lightning, for example, is peer to peer, and then only does net settlement to the main blockchain very infrequently (maybe after a couple months of transactions). This also makes it vastly more energy efficient on a per-transaction basis, the marginal energy cost of a transaction can approach zero. But also, my understanding is that the transaction history isn’t really preserved in a format that would be easy for a government to put together after the fact.