What are Layer 1 and Layer 2 solutions?

Layer-1 solutions add utility to a native blockchain to optimize its performance. Layer-2 solutions are third-party protocols that integrate with an underlying Layer-1 blockchain to increase transactional throughput. What Is Blockchain Scalability? What Is Blockchain Scalability?

What is the difference between a layer 1 and Layer 2 blockchain?

In the decentralized ecosystem, a Layer-1 network refers to a blockchain, while a Layer-2 protocol is a third-party integration that can be used in conjunction with a Layer-1 blockchain. Bitcoin, Litecoin, and Ethereum, for example, are Layer-1 blockchains.

What is a layer 2 network?

What Is Layer 2? A layer 2 is any off-chain network, system, or technology built on top of a blockchain to help extend its capabilities. A layer 2 refers to any off-chain network, system, or technology built on top of a blockchain (commonly known as a layer-1 network) that helps extend the capabilities of the underlying base layer network.

What is layer 2 scaling?

The primary aim of layer 2 scaling is to employ networks or technologies that operate on top of a blockchain protocol. A blockchain network could achieve increased scalability and efficiency with the aid of an off-chain protocol or network.