Layer 2
Also known as L2 layer two layer 2s
A layer 2 is a network built on top of a base blockchain to process transactions more cheaply and quickly while relying on that base layer for security. It typically handles activity off the main chain and periodically posts compressed data or proofs back to it. Rollups and state channels are common layer 2 designs. Users usually move funds in and out through bridges, and withdrawal times and trust assumptions vary by design.
Related terms
- Rollup A layer 2 that batches transactions and settles them on a base chain. Scaling
- Layer 1 A base blockchain with its own consensus and security. Scaling
- Bridge A system that moves assets or messages between blockchains. Interoperability
- Sequencer The rollup component that orders and batches transactions. Scaling