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Layer 1 vs Layer 2 Explained

Layer 1 is the base blockchain; Layer 2 is built on top to make it faster and cheaper. Here is how they fit together.

Не является финансовым советом. This article is for informational purposes only. Cryptocurrency is volatile and high-risk — do your own research.

As blockchains get busier, they get slower and more expensive to use. “Layer 1” and “Layer 2” describe two levels of the stack that solve this in different ways.

Layer 1 — the base chain

A Layer 1 is the underlying blockchain itself: Bitcoin, Ethereum, Solana. It is where transactions ultimately settle and where security and decentralisation live. The catch is that verifying every transaction on thousands of computers is what makes an L1 secure — and also what makes it congest and charge higher fees when demand spikes.

Layer 2 — built on top

A Layer 2 is a separate network that runs on top of a Layer 1 to make it faster and cheaper. It processes transactions away from the main chain and then settles a compressed summary back to the L1, inheriting most of its security. Bitcoin’s Lightning Network and Ethereum rollups such as Arbitrum and Optimism are the best-known examples.

How to think about it

The Layer 1 is the secure foundation; the Layer 2 is the scaling layer that keeps everyday transactions cheap. The trade-off with L2s is added complexity — you often bridge assets across, and different L2s have different security and withdrawal models. As the technology matures, those rough edges are smoothing out.

See also What Are Ethereum Layer 2s? Not financial advice.

About the author Verified
Max Clark
Blockchain & Web3 Reporter

Max Clark reports on blockchain infrastructure, cryptocurrency markets, decentralized finance, AI-powered blockchain applications, and next-generation Web3 technologies. His coverage includes Layer 1 and Layer 2 ecosystems, token launches, developer innovation,…

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