What is a Layer 2 in crypto?
Layer 2 is a set of solutions from third-party protocols that can be integrated with a Layer 1 blockchain and overcome specific and existing problems. It is a secondary protocol created on a current blockchain network to solve limitations associated with transaction speed and scaling problems.
The growth of popular existing blockchain networks is obstructed due to transaction speed, data processing time, TPS, fees, and scalability problems. Layer 2 aims to address these problems and offer solutions to support the growth of current blockchain networks.
The way in which Layer 2 is built and functions may also be considered as an independent network that works in conjunction with existing blockchain networks. Accordingly, the current blockchain networks such as Bitcoin or Ethereum are labeled as the main chain or Layer 1 chain.