What is a layer-2 in blockchain?

Layer-2 refers to a network or technology that operates on top of an underlying blockchain protocol to improve its scalability and efficiency . … For instance, Bitcoin is a Layer-1 network, and the Lightning Network is a Layer-2 solution built to improve transaction speeds in this fashion on the Bitcoin network.

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What is a layer-2 solution?

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 Layer 2 and Layer 3 Crypto?

Layer 2 protocols often use a combination of on-chain and off-chain operations to offer their extended functional capabilities. Examples of layer 2 projects on Bitcoin include the Lightning Network and Liquid Network platforms. Layer 3 refers to the protocols that enable DApps on the blockchain .16 Şub 2022

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