Layer 1 vs Layer 2

Blogs IT, Cloud, Software and Technology

Posted 2025-01-02 06:47:00

Layer 1 vs Layer 2 are terms used to describe the architecture of blockchain networks. Layer 1 refers to the base protocol of a blockchain, such as Bitcoin or Ethereum, where transactions are directly recorded on the main chain. Layer 2 is a secondary framework built on top of Layer 1 to enhance scalability, transaction speed, and cost-efficiency. Examples include the Lightning Network for Bitcoin and Optimistic Rollups for Ethereum. Layer 2 solutions aim to alleviate the congestion and high fees associated with Layer 1 blockchains.

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