What is an L1 blockchain?

Layer 1 refers to a base network, such as Bitcoin, BNB Chain, or Ethereum, and its underlying infrastructure . Layer-1 blockchains can validate and finalize transactions without the need for another network. Making improvements to the scalability of layer-1 networks is difficult, as we’ve seen with Bitcoin.

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What is L2 in blockchain?

Layer 2 is a term used for solutions created to help scale an application by processing transactions off of the Ethereum Mainnet (layer 1) while still maintaining the same security measures and decentralization as the mainnet . Layer 2 solutions increase throughput (transaction speed) and reduce gas fees.

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What is Bitcoin layer 2?

The Lightning Network (LN) is a “layer 2” payment protocol layered on top of a blockchain-based cryptocurrency such as bitcoin or litecoin . It is intended to enable fast transactions among participating nodes and has been proposed as a solution to the bitcoin scalability problem.

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What is blockchain used for today?

Blockchain provides a way to securely and efficiently create a tamper-proof log of sensitive activity. This makes it excellent for international payments and money transfers . For example, in April 2018, Banco Santander launched the world’s first blockchain-based money transfer service.10 Şub 2022

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