Layer 2


Layer 2 is a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of Layer 2 technologies is to solve the transaction speed and scaling issues faced by the major cryptocurrency networks.


Examples of Layer 2 solutions include Lightning Network for Bitcoin and Plasma for Ethereum, which operate on top of the base layer and are intended to increase transaction throughput without compromising the decentralized security model of the underlying blockchain.