Layer 2

A network built on top of a blockchain to make transactions faster and cheaper.

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What is a Layer 2?

A Layer 2 is a secondary network built on top of a base blockchain to improve speed and reduce fees. It handles transactions separately, then settles the results back to the main chain.

How it helps

By taking activity off the main network, Layer 2 solutions ease congestion while still relying on the base chain for security. Rollups are a common example on Ethereum.

Related terms

The ability of different blockchains to work together.

The property of blockchain records being extremely difficult to change once confirmed.

An early cryptocurrency created as a lighter, faster alternative to Bitcoin.

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