Layer 2 Network

What is Layer 2?

A Layer 2 (L2) network is a secondary framework built on top of a Layer 1 blockchain that handles transaction processing off the main chain, then posts summarized or cryptographically proven results back to the Layer 1 for final settlement. L2s inherit the security of the underlying L1 while dramatically increasing throughput and reducing per-transaction costs. The two dominant L2 architectures on Ethereum are optimistic rollups — such as Arbitrum and Optimism, which assume transactions are valid and allow a challenge period — and zero-knowledge rollups (ZK-rollups) — such as zkSync Era and StarkNet, which generate cryptographic proofs of validity. Layer 2 networks are the primary scaling infrastructure for Ethereum DeFi, enabling sub-cent transaction fees and thousands of transactions per second while leveraging Ethereum's security. For DeFi users, L2s make gas-intensive interactions like frequent DEX trades, yield farming, and liquidity provision economically viable.