Layer 2(L2)
Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
In-Depth Explanation
L2s (Arbitrum, Optimism, Base) bundle many transactions into single L1 submissions, dramatically reducing per-transaction costs. Users interact with the L2, which periodically posts proofs or data to L1. L2s have their own fee markets and sequencers, creating new revenue streams and economic dynamics.
Related Terms
Rollup
An L2 scaling solution that executes transactions off-chain but posts transaction data or proofs to L1 for security.
Sequencer
The entity that orders and batches transactions on an L2 rollup before submitting them to L1.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.
More in Infrastructure
View all →Gas Fees
Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.
Sequencer
The entity that orders and batches transactions on an L2 rollup before submitting them to L1.