What Is a Layer 2 Network for Blockchains?

Cryptocurrency scalability is crucial for blockchain performance

Scalability allows networks to handle more transactions without compromising speed or cost-efficiency

Layer 2 networks are built on top of Layer 1 blockchains

They extend the underlying blockchain while inheriting security guarantees and often run with smart contracts

Layer 2 solutions are vital in the crypto landscape

Despite progress, Layer 1 blockchains like Bitcoin and Ethereum face scalability limits

Layer 2 offers many perks. Faster transactions, lower fees, and transaction finality on the mainnet. This allows the mainnet to focus on decentralization, data security, and availability. A win for users and the crypto industry's growth