Understanding Blockchain Layers – Layer 1 vs Layer 2
In crypto, you’ll often hear about Layer 1 and Layer 2. But what does it really mean?
Layer 1: The Base Blockchain
This is the core network like Bitcoin, Ethereum, BNB Chain, Solana, etc. It handles all transactions, smart contracts, and security directly.
However, Layer 1s can get slow and expensive when traffic is high.
Layer 2: The Scalable Solution
These are built on top of Layer 1 to handle more transactions faster and cheaper.
Examples include Polygon (on Ethereum), Arbitrum, and Optimism.
Layer 2s help fix congestion, reduce fees, and improve user experience without compromising the security of the main chain.
Why it matters for investors?
Scalable blockchains = more adoption = more value.
Projects building strong Layer 2s often become game-changers in the crypto space.
Smart investors understand the layers before they buy. Do you?
