BlockchainIntermediate#Scaling#Infrastructure
Layer 2 (L2)
L
Definition
A secondary framework or protocol built on top of an existing blockchain (L1) to improve scalability and transaction speed.
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Concept Diagram
Key Takeaways
1
L2s are express lanes built on top of Ethereum for cheaper and faster transactions
2
Most use rollup technology bundling thousands of off-chain transactions into one on-chain proof
3
Enable high-speed DEXs, on-chain gaming, and algorithmic trading
4
Ethereum's roadmap is rollup-centric with L1 as the secure settlement vault
Practical Example
Sending a swap on Ethereum L1 might cost $15 in gas and take 12 seconds - the same swap on Arbitrum L2 costs $0.10 and completes in under a second.
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Related Terms
Blockchain
Data Availability (DA)The guarantee that the data required to verify a block is available to all network participants, critical for Rollup security.
Blockchain
SequencerA node in a Rollup (L2) responsible for ordering transactions before they are batched and sent to the L1 (Ethereum).
Blockchain
Base Layer (Layer 1)The foundational blockchain architecture (e.g., Bitcoin, Ethereum) that provides security and finality for the entire network.
Blockchain
ShardingA method of scaling blockchain networks by splitting the database into small pieces (shards) to process transactions in parallel.
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