Translate'%3e%3cpath%20fill='%23ffffff'%20d='M%2087.636719%20131.8125%20L%2087.632812%20131.796875%20M%20344.1875%20153.058594%20L%20344.238281%20153.042969%20L%20344.144531%20153.042969%20L%20273.226562%20126.554688%20L%20273.1875%20126.507812%20L%20273.128906%20126.519531%20L%20224.152344%20108.226562%20L%20224.132812%20108.21875%20L%20224.113281%20108.175781%20L%20224.046875%20108.1875%20L%20187.472656%2094.527344%20L%20187.488281%2094.5%20L%20128.769531%20116.429688%20L%2087.625%20131.800781%20L%2030.746094%20153.042969%20L%20104.796875%20180.699219%20L%20107.859375%20181.84375%20L%20150.726562%20197.855469%20L%20187.488281%20211.585938%20L%20229.398438%20195.933594%20L%20267.121094%20181.84375%20L%20276.933594%20178.179688%20L%20344.167969%20153.066406%20L%20344.214844%20153.066406%20L%20344.1875%20153.058594%20'%20fill-opacity='1'%20fill-rule='nonzero'/%3e%3c/g%3e%3cpath%20fill='%23ffffff'%20d='M%20107.859375%20188.507812%20L%20107.859375%20219.835938%20L%20107.863281%20219.835938%20C%20107.863281%20219.859375%20107.859375%20219.882812%20107.859375%20219.910156%20C%20107.859375%20232.941406%20116.6875%20244.746094%20130.972656%20253.316406%20C%20145.398438%20261.976562%20165.390625%20267.34375%20187.488281%20267.34375%20C%20190.335938%20267.34375%20193.144531%20267.25%20195.914062%20267.078125%20L%20195.914062%20267.074219%20C%20217.316406%20265.738281%20236.1875%20259.347656%20249.117188%20249.945312%20C%20260.367188%20241.765625%20267.121094%20231.308594%20267.121094%20219.910156%20C%20267.121094%20219.882812%20267.117188%20219.859375%20267.117188%20219.835938%20L%20267.121094%20219.835938%20L%20267.121094%20188.507812%20L%20187.488281%20218.25%20L%20107.859375%20188.507812%20'%20fill-opacity='1'%20fill-rule='nonzero'/%3e%3cg%20clip-path='url(%236691404858)'%3e%3cpath%20fill='%23ffffff'%20d='M%2092.464844%20259.238281%20L%2092.421875%20258.8125%20L%2089.839844%20231.960938%20L%2089.726562%20230.78125%20L%2088.480469%20217.851562%20L%2089.527344%20217.851562%20L%2089.527344%20203.476562%20C%2090.964844%20202.183594%2091.875%20200.3125%2091.875%20198.222656%20C%2091.875%20197.152344%2091.636719%20196.140625%2091.210938%20195.234375%20C%2090.515625%20193.757812%2089.328125%20192.558594%2087.859375%20191.851562%20L%2087.859375%20174.375%20L%2081.617188%20172.046875%20L%2081.617188%20191.910156%20C%2079.3125%20193.078125%2077.726562%20195.460938%2077.726562%20198.222656%20C%2077.726562%20200.3125%2078.636719%20202.183594%2080.078125%20203.476562%20L%2080.078125%20217.851562%20L%2081.21875%20217.851562%20L%2080.464844%20225.59375%20L%2079.523438%20235.222656%20L%2077.203125%20258.945312%20L%2077.195312%20259.027344%20L%2075.9375%20271.894531%20L%2074.8125%20283.398438%20C%2074.785156%20283.648438%2074.78125%20283.929688%2074.8125%20284.183594%20C%2075.191406%20287.339844%2079.96875%20289.722656%2085.484375%20289.503906%20C%2091%20289.292969%2095.167969%20286.558594%2094.789062%20283.398438%20L%2092.464844%20259.238281%20'%20fill-opacity='1'%20fill-rule='nonzero'/%3e%3c/g%3e%3c/svg%3e)
← Back to GlossaryTechnicalLearn more in the Academy →
What is Layer 2 (L2)?
Layer 2 solutions are built on top of existing blockchains (like Ethereum) to process transactions faster and cheaper while inheriting the base layer's security. Examples: Polygon, Arbitrum, Base.
Full Explanation
Layer 2 (L2) refers to secondary frameworks built on top of Layer 1 blockchains (Ethereum, Bitcoin) to improve scalability. L2s process transactions off the main chain and periodically settle back to L1, inheriting its security. Types: Rollups (Optimistic — Arbitrum, Base; ZK — zkSync, StarkNet), Sidechains (Polygon PoS), State Channels (Lightning Network for Bitcoin). L2s reduce gas fees from $5-50 to $0.01-0.50 while maintaining Ethereum's security guarantees. TVL across Ethereum L2s exceeds $30 billion.
Example
Swapping tokens on Arbitrum costs $0.10 vs $5-20 on Ethereum mainnet. Both settle to Ethereum for security. Base (by Coinbase) is another popular L2.
Related Terms
Last updated: 2026-03-21
