What differentiates Layer 1 vs. Layer 2 blockchains?

[encrypted]

Layer 1: Base protocols like Bitcoin, Ethereum, Solana, or Avalanche. They handle security, consensus, and transaction settlement natively. Scaling is limited by the protocol itself.

Layer 2: Solutions built atop Layer 1 to improve throughput, lower fees, or enable new functionalities without altering the main chain. Examples: Ethereum’s Optimistic Rollups, zk-Rollups, Lightning Network for Bitcoin.

Key takeaway: L2 inherits L1 security while boosting efficiency.