Layer 2
A Layer 2 is a scaling network built on top of a Layer 1 blockchain.
✦ Key Insight
Layer 2s help reduce fees and improve transaction speed.
✕ Common Misconceptions
Sending funds to the wrong network or assuming every Layer 2 has the same security model.
Detailed Explanation
How It Works
They process activity off the main chain and later settle data back to the Layer 1.
Related Terms
Layer 1, Bridge, Gas Fee, Rollup
FAQs
Why use a Layer 2?
To save fees and get faster transactions.
In Practice
Dig Deeper
Gas Fee
A gas fee is the cost paid to process a transaction or execute a smart contract action on a blockchain. It is the fee users pay to the network so their transaction can be included and confirmed.
Bridge
A bridge moves crypto assets from one blockchain to another.
Layer 1
A Layer 1 is a base blockchain network that processes and secures transactions directly.
Rollup
A rollup is a Layer 2 scaling method that bundles many transactions together before posting them to a Layer 1.