Layer 1 vs Layer 2

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Sofia Clark 05 Nov 2024

A Layer 1 Layer 2 blockchain refers to a decentralized cryptocurrency network’s base architecture.

Confused about the difference between Layer 1 and Layer 2 solutions? Our latest blog, Layer 1 vs Layer 2, explains these critical concepts in blockchain technology. Layer 1 refers to the base blockchain architecture, like Bitcoin and Ethereum, which handles all transactions and security. In contrast, Layer 2 solutions, such as the Lightning Network and Rollups, are built on top of Layer 1 to improve scalability and reduce transaction costs.