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A network built on top of a main blockchain, such as Ethereum, that handles transactions faster and cheaper and then reports back to it.
Crypto Drafted with AI help · Reviewed by Keshav Aggarwal · Updated
In simple words
Imagine a busy main road. Someone builds an express lane above it. Cars travel there quickly and only report to the main road now and then.
That express lane is a Layer 2.
The technical side
Layer 2 networks process transactions off the main chain (layer 1) and post compressed results back to it, inheriting much of its security. On Ethereum, most are rollups: optimistic rollups such as Arbitrum, Optimism and Base, and zero-knowledge rollups such as zkSync and Starknet.
They cut fees from dollars to cents. Bitcoin’s best-known layer 2 is the Lightning Network, used for fast, small payments.
Layer 2 kya hai?
Layer 2 main blockchain ke upar bani fast lane hai. Transactions sasti aur tez hoti hain, phir hisaab main chain pe bhej diya jaata hai.
Not investment advice. Crypto tokens can lose all their value. Read the risk disclaimer.
Related terms
- Gas FeeCryptoThe fee paid to a blockchain network to process a transaction or run a smart contract, best known on Ethereum.
- BlockchainCryptoA shared record of transactions, copied across many computers, where each new block of entries is linked to the one before it.
- Smart ContractCryptoA program stored on a blockchain that runs by itself when its conditions are met, such as releasing funds once a payment arrives.