Layer 1 vs Layer 2
Layer 1 vs Layer 2 refer to different layers of blockchain technology. Layer 1 is the base blockchain, like Ethereum or Bitcoin, that handles transactions and consensus directly on the main chain. However, Layer 1 can face scalability issues as transaction volumes grow. Layer 2 solutions, such as the Lightning Network or Optimistic Rollups, are built on top of Layer 1 to improve scalability, reduce transaction fees, and increase processing speeds without compromising the security of the main blockchain.
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