Layer 2

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Layer 2

What is Layer 2?

A layer 2 framework or protocol is one that is added on top of an existing blockchain system. These protocols’ principal objective is to address the scale and transaction performance issues that the major cryptocurrency networks are now experiencing.

For instance, it is damaging to the long-term development of Bitcoin and Ethereum as they are still unable to handle thousands of transactions per second (TPS). Before these networks to be efficiently embraced and used on a larger scale, better throughput is required. The phrase “layer 2” here refers to the many approaches to the blockchain scalability issue that are being put forth.

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