🎓 What are Layer-1 vs. Layer-2 Blockchains?
Understand the difference – and make better investment decisions.
📌 Why this is important:
I invested in a Layer-2 project in 2022 without knowing what it actually does. Result? -40 %. Today I know: Those who understand the basics trade smarter.
🔍 Briefly explained:
- Layer-1 = Main blockchain (e.g. Bitcoin, Ethereum)
→ They secure the network & execute transactions
- Layer-2 = Extension on Layer-1
→ They relieve the main network & make it faster & cheaper
📊 Example:
- Ethereum (Layer-1) is often overloaded
- Arbitrum or Optimism (Layer-2) process transactions cheaper
➡️ This makes Layer-2 projects exciting for traders & investors
💡 My tip:
Before investing in a project, ask yourself:
"Is it Layer-1 or Layer-2 – and how does it solve real problems?"
📈 Layer-2s are often more scalable, but also riskier.
❓ What was your biggest Aha moment learning about blockchain?
👇 Share your experience in the comments!
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