Layer 2 🛠️

In the last post we discussed "Layer 1" - It is the foundation layer of every blockchain network. Let us discuss "Layer 2" today 🚀

What is Layer 2?

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

In this context, the term “layer 2” refers to the multiple solutions being proposed to the blockchain scalability problem. Two major examples of layer 2 solutions are the Bitcoin Lightning Network and the Ethereum Plasma. Despite having their own working mechanisms and particularities, both solutions are striving to provide increased through  blockchain systems. 

How does Layer 2 Work?

An independent blockchain acting in concert with Bitcoin, Ethereum or other major chain, which retroactively became known as "Layer 1 chains" or "main chains." Layer 2 chains process new transactions faster while reducing the load on Layer 1 and typically taking much lower fees.

That's it for the day geeks, Web3Shala Signing Off ✌🏻

Have a nice day :)Keep Learning 🙏🏻