Layer 2

Layer 2 is a separate blockchain system built on top of a main blockchain (like Bitcoin or Ethereum) to speed up transactions and lower fees. Think of it as an express lane on a highway—instead of every transaction getting stuck in the main network's traffic, Layer 2 handles many transactions off to the side, then settles the final result back on the main chain. You'll hear about Layer 2 when researching crypto projects, because it's a key way blockchains solve their speed and cost problems. For example, a crypto platform might use a Layer 2 solution so users can trade tokens quickly without paying $50 in network fees. It matters because Layer 2 adoption often signals whether a blockchain project can actually scale and compete in the real world.