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Crypto

Layer 2 (L2)

Secondary blockchain networks built on top of base layers (L1) to improve speed and reduce costs.

In depth

Examples on Ethereum: Arbitrum, Optimism, Base, zkSync. Bundle many transactions and post compressed proof to L1. Fees often 10-100x lower than L1. Trade-offs include slower withdrawals back to L1 (especially optimistic rollups).

Frequently asked about Layer 2 (L2)

What is Layer 2 (L2)?

Secondary blockchain networks built on top of base layers (L1) to improve speed and reduce costs. Examples on Ethereum: Arbitrum, Optimism, Base, zkSync. Bundle many transactions and post compressed proof to L1. Fees often 10-100x lower than L1. Trade-offs include slower withdrawals back to L1 (especially optimistic rollups).

Why does Layer 2 (L2) matter for investors?

In crypto, Layer 2 (L2) is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Layer 2 (L2) used in practice?

Examples on Ethereum: Arbitrum, Optimism, Base, zkSync. Bundle many transactions and post compressed proof to L1.

Recent news mentioning Layer 2 (L2)

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