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Blockchain & Crypto vocabulary · Networks, Forks & Scaling

Layer 2

Meaning in blockchain & crypto, with examples

nounCommon term

In blockchain & crypto, layer 2 means: A network built on top of a layer 1 blockchain that handles transactions faster and more cheaply, then sends the results back to the main chain for security. Rollups and the Lightning Network are examples.

In Turkish: katman 2, ikinci katman

How it is used

Written layer 2, Layer 2 or L2. Teams deploy to an L2 and bridge assets to it, and people discuss L2 fees and L2 adoption. A common user question is how long a withdrawal from an L2 back to layer 1 takes.

Example sentences

  1. Fees on the layer 2 are a few cents, compared with several dollars on mainnet.

  2. Withdrawals from this layer 2 to Ethereum can take up to seven days.

Common collocations

  • layer 2 network
  • L2 solution
  • bridge to a layer 2
  • deploy on a layer 2
  • layer 1A base blockchain that processes and finalizes transactions on its own network, such as Bitcoin or Ethereum. Other systems can be built on top of it.
  • rollupA type of layer 2 that bundles many transactions together off the main chain and posts the compressed data or a proof back to layer 1, which cuts fees while keeping layer 1 security.
  • bridgeA service or set of smart contracts that moves tokens or data from one blockchain to another, usually by locking the asset on one chain and issuing an equivalent on the other.
  • scalabilityThe ability of a blockchain to handle more users and transactions without becoming slow or expensive. It is one of the biggest technical challenges in the field.
  • gas feeThe fee paid to the network to process a transaction or run a smart contract, especially on Ethereum and similar chains. It goes up when the network is busy.

More terms: Networks, Forks & Scaling

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