Layer 1 vs Layer 2

A Layer 1 blockchain secures and settles transactions itself, while a Layer 2 processes them off the main chain and posts the results back to it. Layer 2s exist mainly to lower fees and raise throughput while borrowing the base chain's security.

Related Terms

  • Blockchain

    A blockchain is a shared, append-only digital ledger that many computers keep in sync without a central owner. Records are grouped into blocks linked by cryptography, which makes past entries very hard to alter.

  • Gas Fee

    A gas fee is the charge paid to a blockchain network to process a transaction or run smart contract code. It is priced per unit of computation and rises when the network is busy.

  • Layer 2

    A Layer 2 is a network built on top of a base blockchain that processes transactions away from the main chain and settles the results back to it. The aim is lower fees and higher throughput.

  • Rollup

    A rollup is a Layer 2 network that executes transactions off the main chain and posts them in compressed batches to it. Fraud proofs (optimistic) or validity proofs (ZK) keep the results honest.

  • zkEVM

    A zkEVM is a virtual machine that runs Ethereum-compatible smart contracts and produces zero-knowledge proofs that the execution was correct. It powers ZK rollups that support existing Ethereum tools.

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