Blockchain & tech

Layer 2 (L2)

Also called: L2

In shortA network built on top of a layer 1 that processes transactions cheaply and then settles them back on the main chain.

Most Ethereum L2s are rollups: Arbitrum, Optimism, Base and others bundle thousands of transactions and post them to Ethereum. Bitcoin's Lightning Network is another kind of L2.

You get lower gas fees, but moving funds between the L2 and the main chain needs a bridge, and each L2 adds its own risks.

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