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Disclaimer: All Forex and cryptocurrency forecasts, analyses, and market reviews on this website are for informational purposes only and do not constitute investment advice. Trading and investing involve risks of capital loss. See our full disclaimer.Layer 2 (L2) solutions are protocols built on top of a main blockchain like Bitcoin or Ethereum. Their purpose is to take the pressure off the base layer, making transactions faster and cheaper while keeping the security and decentralization of the original chain. The issue is what’s known as the “scalability trilemma”: it’s hard to build a blockchain that is at the same time secure, decentralized, and fast. Early blockchains like Bitcoin and Ethereum only handle a handful of transactions per second, which creates bottlenecks and high fees when demand spikes. L2 helps by moving activity off-chain. Transactions happen on the second layer and only the final state is settled back on the main chain. This keeps the base layer lean, while users enjoy speed and low costs.
© 2009-2025 FORECK.INFO All rights reserved
Disclaimer: All Forex and cryptocurrency forecasts, analyses, and market reviews on this website are for informational purposes only and do not constitute investment advice. Trading and investing involve risks of capital loss. See our full disclaimer.