Layer 2

The term “layer 2” refers to a collection of off-chain solutions (distributed blockchains) constructed on top of layer 1s to address scale and data bottlenecks. These protocols’ principal objective is to address the scale and transaction performance issues that the major cryptocurrency networks are now experiencing.

Transactions can be conducted independently of layer 1 using layer 2 protocols, which offer a second framework. As a result, a sizable portion of the work that would normally be carried out by the main chain can be shifted to the second layer. In the layer 1 ledger and history of the blockchain, the data of transactions is safeguarded by layer 2 applications before being posted there.

The accessibility of layer 2s varies, just like that of other open or restricted platforms. Some are applicable to a variety of applications, while others are only tailored to the requirements of a single project. Rollups and sidechains are two of the important elements that layer 2s use.

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