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Layer 1 secures the blockchain, while Layer 2 boosts speed and lowers costs.
Layer 2 scaling is driving growth in DeFi apps and NFTs by improving performance and affordability.
The future is expected to combine Layer 1 for security, Layer 2 for scalability, and real-world adoption.
Blockchain has moved far beyond just sending cryptocurrency. Today, it powers DeFi apps, games, NFTs, payments, and even business systems. Speed and cost have become the most important aspects to consider when development is the priority. That’s where Layer 1 (L1) and Layer 2 (L2) are used.
Layer 1 is the main blockchain itself, like Bitcoin or Ethereum. It is a secure and decentralized foundation. Improvements at this level happen directly on the main network, but scaling can be slower and more expensive.
Layer 2 is built on top of Layer 1. Instead of changing the base chain, it processes transactions off-chain and then records the final result on L1. Networks like Arbitrum and Optimism make transactions faster and much cheaper.
Layer 1 is the main blockchain network that handles transactions, verifies them, and keeps the system secure through consensus rules.
Layer 1 is built for security and decentralization. As a result, speed can be limited. When many users become active, fees increase, and transaction confirmation takes longer. Some newer Layer 1 blockchains displayed high transactions per second (TPS) in testing, but real-world speeds are usually lower due to congestion and heavy network activity.
Ethereum displays this disparity clearly. In 2023, its ecosystem processed around 50 transactions per second. By 2025, that number will grow to over 325 transactions per second, mainly due to Layer 2 networks built on top of Ethereum.
Layer 2 solutions are built on top of Layer 1 blockchains. They process transactions off the main chain and later settle the results back onto Layer 1. This reduces congestion and significantly lowers fees.
Popular Ethereum Layer 2 networks such as Arbitrum and Optimism have grown rapidly between 2024 and 2025. Together, rollups accumulated tens of billions of dollars in total value locked (TVL) during peak periods. This shows that users are not only experimenting with Layer 2 but actively moving capital there.
Layer 2 systems increase speed as most activity happens off the main chain. Transactions are bundled together and submitted to Layer 1 as a single proof or summary. This approach allows thousands of operations to be processed more efficiently while still relying on the main blockchain's security.
Also Read - Top Fastest Blockchain Networks in 2026 You Should Know
Payment-focused Layer 2 solutions show how powerful this model can be. The Lightning Network, built on top of Bitcoin, enables near-instant, low-cost payments. In late 2025, Lightning Network capacity exceeded 5,600 BTC, reaching a new all-time high. This increase reflects growing liquidity and adoption for everyday transactions.
Such systems demonstrate that while Bitcoin’s base layer is secure and decentralized, fast, small payments are better handled off-chain. Layer 2 enables this without changing Bitcoin’s core design.
One reason Layer 1 remains important is security. Layer 2 networks depend on Layer 1 for final settlement. Rollups periodically send transaction data or proofs back to the base chain.
There are different types of rollups. Optimistic rollups assume transactions are valid unless challenged. Zero-knowledge rollups use mathematical proofs to confirm correctness immediately. Both methods allow faster and cheaper user transactions while keeping Layer 1 as the final source of truth.
This model has become known as a “rollup-centric” approach. In this structure, Layer 2 handles speed and user activity, while Layer 1 acts as a secure settlement and dispute layer.
Also Read - Best Layer 1 Blockchain Coins You Should Know in 2026
The future of blockchain scalability appears to be a combination of both layers. Layer 1 will continue improving data availability and efficiency, while Layer 2 solutions will enhance proof systems and execution speed. Instead of competing directly, both layers are becoming parts of a shared architecture.
Faster blockchains are no longer powered by a single layer alone. Based on current adoption trends and data, Layer 2 networks are leading the way in delivering practical speed, while Layer 1 remains the backbone that makes it all possible.
1. What is Layer 1 in Blockchain?
Layer 1 is the main blockchain network that processes and validates transactions while maintaining security and decentralization.
2. What is Layer 2?
Layer 2 is built on top of Layer 1 and processes transactions off-chain before settling them back on the main blockchain.
3. Why is Layer 2 important for DeFi Apps?
Layer 2 reduces transaction fees and increases speed, making DeFi Apps more accessible and efficient for users.
4. How does Layer 2 help NFTs?
Lower fees and faster processing make NFT minting and trading more affordable and scalable.
5. Does Layer 2 replace Layer 1?
No. Layer 2 depends on Layer 1 for security and final settlement, working together rather than replacing it.
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