What is L1 & L2 blockchain?

Layer 1 refers to the foundation level of a blockchain architecture – the primary structure of a blockchain. Examples of L1 chains include Bitcoin, Ethereum, and BNB Smart Chain. On the other hand, L2 are chains built on top of other networks.

What is layer 2 (L2)?

Layer 2 (L2) is a collective term to describe a specific set of Ethereum scaling solutions. A layer 2 is a separate blockchain that extends Ethereum and inherits the security guarantees of Ethereum. Now let’s dig into it a bit more. To do this we first need to explain layer 1 (L1). What is layer 1? Layer 1 is the base blockchain.

What is the difference between L1 and L2 networks?

Examples of L1 chains include Bitcoin, Ethereum, and BNB Smart Chain. On the other hand, L2 are chains built on top of other networks. For example, Polygon (MATIC) is an L2 protocol built on the Ethereum blockchain, as seen in the diagram below. The significant differences between L1 and L2 networks lies in their role and focus on the blockchain:

What is a layer 2 blockchain?

Layer 2 blockchains are supplementary networks that help decentralized apps on a slower chain attain faster and cheaper transactions. For example, Ethereum-based decentralized applications (or dApps) can migrate to its Layer 2 (or L2) chains without major changes to support higher usage volumes while still enjoying Ethereum’s security.