$BTC "Layer 1 vs Layer 2 – Why You Need to Know the Difference"

A lot of people invest in crypto without really knowing how different blockchains work. So today, let’s break down Layer 1 vs Layer 2 in simple terms:

Layer 1 = The base blockchain

Examples: Bitcoin, Ethereum, Solana

This is where the core operations happen — security, consensus, and the full transaction history.

Downside? It can get slow and expensive when there’s high demand.

Layer 2 = Built on top of Layer 1

Examples: Arbitrum, Optimism, Polygon

These are designed to handle more transactions, faster and cheaper, by taking the pressure off Layer 1.

Upside: Lower fees and faster transactions.

Why does this matter to you?

Understanding the difference helps you invest smarter and recognize which projects are solving real problems in blockchain scalability.

Are you holding any Layer 2 tokens? Or are you still riding with the Layer 1 OGs? Let’s talk in the comments!

#CryptoEducation #Layer1vsLayer2 #BlockchainBasics #BinanceSquare #Web3