Layer 1 vs Layer 2

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Layer 1 vs Layer 2 refer to different approaches for scaling blockchain networks. Layer 1 is the base blockchain infrastructure, such as Bitcoin or Ethereum, where the main protocol processes transactions. Layer 2 solutions are built on top of Layer 1 to improve scalability and reduce congestion by offloading some transaction processing. Examples of Layer 2 solutions include the Lightning Network and Optimistic Rollups. While Layer 1 focuses on security and decentralization, Layer 2 enhances performance and speed, making it suitable for high-volume applications.

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