Layer 2 (L2)
L2 in crypto refers to a secondary framework or protocol built on top of an existing blockchain (Layer 1) to enhance its scalability and efficiency.
In general, L2 solutions aim to solve scalability issues of Layer 1 blockchains like Ethereum by handling transactions off the main chain, thereby reducing congestion and fees.
Why L2? L2s enable faster transaction times, lower costs, and increased throughput without compromising the security of the L1s.
Top Projects
1. Arbitrum
Arbitrum is a Layer 2 solution for Ethereum, designed to improve its scalability and efficiency. Its main focus is DeFi applications.
2. Polygon (POL)
Polygon, previously known as Matic Network, is a framework and protocol for building and scaling Ethereum-compatible blockchain networks. It has recently become one of the largest hosts for web3 gaming.
3. Blast (BLAST)
Blast is a new Ethereum Layer 2 solution that stands out by offering native yield for ETH and stablecoins.
