Layer-2
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
- L2second 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
3 linkedExplore connected entries beyond the alphabetical index.
Interoperability
→The ability of blockchains, wallets, and applications to exchange assets, messages, or data across different systems.
Bridge
→Infrastructure that enables moving assets or messages across blockchains.
Hashed Time-Locked Contract (HTLC)
→A contract that locks funds with both a hash condition and a deadline, enabling atomic swaps and routed payments.
All terms and definitions may update as the Cryptionary improves.
