layer 2
A separate blockchain system that processes transactions faster and cheaper than the main network.
Layer 2 refers to a blockchain built on top of another blockchain (the “layer 1”). Instead of recording every transaction on the main network, layer 2 systems batch many transactions together and settle them periodically on the main chain. This reduces congestion and lowers fees.
Layer 2 exists because main blockchains like Ethereum can only process so many transactions per second. By moving activity to a secondary layer, users get faster, cheaper transactions while maintaining security through the main chain’s verification. When you see layer 2 in headlines, it usually means a project is trying to solve a blockchain’s speed or cost problems, or that a network is becoming more practical for everyday use.
Stories mentioning this
- Blast Layer 2 to Shut Down After Costs Outpace Revenue, Sets Oct. 26 Withdrawal Deadline
- Aztec Labs Relaunches zk.money Privacy Wallet on Ethereum Layer 2
- Market Wrap
Written once as a plain-English reference, not as advice. Nothing here is a recommendation to buy or sell anything.