Layer 1 vs Layer 2

Blogs IT, Cloud, Software and Technology

Posted 2025-02-07 07:29:37

Layer 1 vs Layer 2 are two types of blockchain solutions aimed at addressing scalability issues. Layer 1 refers to the base blockchain protocol, such as Bitcoin or Ethereum, where transactions and smart contracts occur. However, scalability and transaction speed can be limited. Layer 2 solutions are built on top of Layer 1 and help alleviate these issues by processing transactions off-chain or in parallel, enhancing performance. Examples include the Lightning Network for Bitcoin and Optimistic Rollups for Ethereum, improving scalability.

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