btc$87,0001.50%
eth$3,2002.10%
sol$145.000.80%
ada$0.72001.20%
xrp$2.150.50%
dot$7.803.20%
avax$35.501.80%
link$16.200.30%
btc$87,0001.50%
eth$3,2002.10%
sol$145.000.80%
ada$0.72001.20%
xrp$2.150.50%
dot$7.803.20%
avax$35.501.80%
link$16.200.30%
Coinvist
Technology

Layer 2

A secondary framework built on top of a Layer 1 blockchain to improve scalability and reduce fees.

Layer 2 solutions are built on top of Layer 1 blockchains to improve scalability, reduce fees, and increase transaction throughput while inheriting the security of the base layer.

Types of Layer 2 solutions include Rollups (Optimistic and ZK), State channels, Plasma chains, and Validiums.

Popular Layer 2 solutions: Arbitrum and Optimism (Ethereum), Lightning Network (Bitcoin), Polygon (Ethereum sidechain), and zkSync and StarkNet (ZK rollups).

Benefits of Layer 2: Faster transactions, lower fees, inherits L1 security, and enables new use cases like micropayments.

For more detailed information, see the Wikipedia article on Layer 2

Related Technology Terms

Blockchain

A distributed digital ledger that records transactions across many computers in a way that cannot be altered retroactively.

Block

A collection of transaction data that is bundled together and added to the blockchain.

Bridge

A protocol that allows tokens and data to be transferred between different blockchain networks.

Consensus Mechanism

A method used by blockchain networks to achieve agreement on the state of the ledger among distributed nodes.

DApp

Decentralized Application. An application that runs on a blockchain network rather than centralized servers.