Layer 1 and Layer 2 are terms used to describe two different types of blockchain architectures.

Layer 1 refers to the base layer of a blockchain network, which is responsible for maintaining the core functionality of the network, such as the consensus algorithm, transaction validation, and block creation. Examples of Layer 1 blockchains include Bitcoin, Ethereum, SUI, SOLANA, APTOS and many others.

Layer 2, on the other hand, refers to a set of protocols and technologies built on top of a Layer 1 blockchain to provide additional features and functionalities. These protocols are designed to improve the scalability, security, and efficiency of the network. Examples of Layer 2 Blockchain include sidechains like Polygon, Optimism, Zkzync, Arbitrum etc.

The main difference between Layer 1 and Layer 2 is that Layer 1 focuses on the core blockchain functionality, while Layer 2 solutions are designed to complement and enhance the functionality of Layer 1.

Layer 2 solutions can be used to address some of the scalability challenges faced by Layer 1 blockchains, such as high fees and slow transaction processing times, by enabling off-chain processing of transactions and reducing the load on the Layer 1 network. Faster transaction speed and so on. Just like what Arbitrum and Optimism are doing.

In summary, Layer 1 is the base layer of a blockchain network, while Layer 2 refers to a set of protocols and technologies built on top of Layer 1 to enhance the network’s features and functionalities.

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