Layer-2

Layer-2 refers to a secondary framework or protocol built on top of an existing Layer-1 blockchain to enhance its scalability, speed, and efficiency. Layer-2 solutions are designed to process transactions off the main blockchain (Layer-1) and then settle the final result back on it. This reduces the workload on the main chain and helps alleviate congestion and high fees. Examples of Layer-2 solutions include the Lightning Network (for Bitcoin) and Optimistic Rollups (for Ethereum). Layer-2 solutions are crucial for improving the usability of blockchain networks by enabling faster and cheaper transactions without compromising security.