Technical Definition
Layer 2
A Layer 2 is a scaling network built on top of a Layer 1 blockchain.
By Crypto University Editorial
Layer 1BridgeGas Fee
✦ 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
“Arbitrum, Optimism, and Base are Ethereum Layer 2 networks.”