Blockchain has a very typical triangle contradiction: it is difficult to balance security, decentralization and scalability when developing a blockchain.
For example, Ethereum performs very well in decentralization and security, but with the increase in users, it also has problems including decreased transaction speed, increased fees, and impaired user experience. This is why improving the scalability of Ethereum has become a focus of the industry.
So how to improve the scalability of public chains? Generally, there are two strategies: one is to expand the main network (Layer 1) to increase transaction capacity; the other is to use the Layer 2 solution, that is, to build a second-layer network outside the main network, which is equivalent to a "viaduct" to solve congestion and fee problems. Therefore, many Layer 2 solutions have emerged.
So in a nutshell: Layer 2 (the second layer) refers to the solution used to expand the basic blockchain (Layer 1) in blockchain technology and network protocols. Its purpose is to increase L1 transaction speed, reduce transaction costs, and enhance network scalability and efficiency. #ETH $ETH $BNB
