Layer 1 vs Layer 2

Layer 1 vs Layer 2 refer to different approaches in blockchain scalability. Layer 1 is the base layer of a blockchain, where the core protocol and consensus mechanism (like proof of work or proof of stake) operate. It directly processes and validates transactions on the blockchain. Layer 2, on the other hand, refers to off-chain solutions that improve the scalability and speed of Layer 1 blockchains by processing transactions off the main chain. Layer 2 solutions, such as state channels or rollups, enhance throughput while maintaining security.