Layer 1 vs Layer 2 are two layers of blockchain architecture. Layer 1 refers to the base blockchain protocol, like Bitcoin or Ethereum, that handles transaction validation, security, and consensus mechanisms. Layer 2 is built on top of Layer 1 to enhance scalability and speed by offloading some transaction processing. Layer 2 solutions like the Lightning Network (Bitcoin) or Optimistic Rollups (Ethereum) allow for faster and cheaper transactions without compromising security, addressing the scalability issues faced by Layer 1 networks.
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