What is the difference between Layer 1 and Layer 2?
A Layer 1 is a base blockchain that settles its own transactions. A Layer 2 is built on top of a Layer 1 to make transactions faster or cheaper, then records results back to the base layer.
Layer 1
The foundational network that finalizes transactions under its own rules. It prioritizes security and decentralization, which can limit speed and raise fees when busy.
Layer 2
A network that processes activity off the base layer for speed and lower cost, then periodically settles back to the Layer 1 for security.
Practical impact
When sending funds, the layer (and network) you choose must match what the recipient expects — a frequent source of costly mistakes.
Layer 1 vs Layer 2 directly affects fees, speed, and — critically — which network you must select when sending.
Think of a Layer 1 as a country's main highway and a Layer 2 as express lanes built alongside it: faster and cheaper, but they still connect back to the main road.
- Sending to the wrong layer/network can make funds unreachable.
- Bridges between layers add steps and have been frequent targets of failures.
- 'Cheaper and faster' can involve different trust assumptions.
See the ecosystem map
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Last reviewed 2026-06-25. This topic can change over time; always confirm current specifics from primary sources.