PROTOCOLS & PLATFORMS
Layer 2 (Layer 2 Scaling Solution)
Definition
Layer 2 solutions are secondary frameworks built on top of existing blockchains to improve scalability and reduce costs. They process transactions off the main chain while inheriting its security.
Example
Example
Polygon, Arbitrum, and Optimism are Layer 2 solutions that offer cheaper DeFi transactions than Ethereum mainnet.
Risks to Consider
Risks
- Centralization risks
- Exit delays
- Technical complexity
Common Questions
Are Layer 2 solutions as secure as Ethereum?
They inherit Ethereum's security but may have additional risks depending on their specific implementation and centralization level.
