What is Layer 1 and Layer 2 Blockchain?

What is Layer 1 and Layer 2 Blockchain?

Layer 1 Blockchain: A Layer 1 network is the main or foundational blockchain. It handles all the core tasks like transaction processing, data availability, and maintaining consensus across a peer-to-peer (P2P) network. Examples of Layer 1 blockchains include Bitcoin and Ethereum, which are two of the biggest in the world. These networks function independently and manage everything required for transactions and security directly on their own blockchain. Layer 2 Blockchain: A Layer 2 network is built on top of a Layer 1 blockchain to improve efficiency and scalability. Instead of processing every transaction on the main chain, Layer 2 solutions bundle transactions, process them off-chain, and then send them back to the main Layer 1 blockchain. This reduces congestion, speeds up the process, and lowers transaction costs. Popular examples of Layer 2 networks include Polygon, Arbitrum, and Base. What is Base Blockchain? Base is a Layer 2 blockchain launched by Coinbase to improve Ethereum’s scalability. It helps reduce congestion and lower transaction costs on Ethereum by processing transactions off-chain and then returning the results to Ethereum. Developers can build smart contracts and decentralized applications (dApps) on Base, making it a powerful tool for scaling Ethereum.