Layer-2
scaling · architecture
A protocol built around a Layer-1 to move activity off the base chain while relying on it for settlement or security.
- Also known as
- L2, second layer
A Layer-2 moves some transaction activity away from the base chain to improve speed, cost, or throughput. Strong L2 designs still rely on the Layer-1 for final settlement, dispute resolution, proofs, or channel enforcement.
L2 designs differ in trust assumptions. Payment channels require liquidity and online monitoring, optimistic rollups have challenge periods, validity rollups depend on proof systems, and sidechains may rely on separate validators.
Related terms
Interoperability
→The ability of blockchains, wallets, and applications to exchange assets, messages, or data across different systems.
infrastructure · protocol
Bridge
→Infrastructure that enables moving assets or messages across blockchains.
technology · defi
Hash Time-Locked Contract (HTLC)
→A conditional payment that can be claimed with a secret before a deadline or refunded after the deadline.
smart-contract · payments · cryptography