Layer 1, Layer 2—what exactly does “layer” mean?
First, the definition: Layer 2 networks move transaction execution off the mainnet, then use Layer 1 network consensus to settle transactions. This is one approach to bypassing the blockchain trilemma.
Why? The more validators there are, the more messages they need to exchange to reach consensus, making it harder to improve performance. This is what causes the three goals to constrain one another.
$ETH is the native coin of Ethereum, a Layer 1 public blockchain, and is used to pay for gas and staking.
Be skeptical of projects promising stable, high returns.
Stay rational and manage your position carefully.
First, the definition: Layer 2 networks move transaction execution off the mainnet, then use Layer 1 network consensus to settle transactions. This is one approach to bypassing the blockchain trilemma.
Why? The more validators there are, the more messages they need to exchange to reach consensus, making it harder to improve performance. This is what causes the three goals to constrain one another.
$ETH is the native coin of Ethereum, a Layer 1 public blockchain, and is used to pay for gas and staking.
Be skeptical of projects promising stable, high returns.
Stay rational and manage your position carefully.
