Layer 2
A faster, cheaper network built on top of a main blockchain. It handles transactions separately but still uses the main chain for security.
Example
Using Arbitrum to trade with fees 10-100x cheaper than regular Ethereum, while your money is still secured by Ethereum.
Related Terms
Advanced Concepts
⚙️How It Works
- 1
Transaction Submission
Users send transactions to the L2 network instead of Ethereum directly
- 2
Off-chain Processing
The L2 sequencer orders and executes transactions quickly and cheaply
- 3
Batch Compression
Many transactions are bundled together and compressed
- 4
Data Posting
Compressed data is posted to Ethereum for security and verification
- 5
Finality
Once confirmed on Ethereum, transactions inherit its security guarantees
📊Key Numbers
10-100x
Fee Savings
cheaper than Ethereum mainnet
$40B+
Combined TVL
across all L2 networks
<2 sec
Transaction Speed
typical confirmation time
⚖️Major Layer 2 Networks
| Feature | arbitrum | optimism | zk Sync | base |
|---|---|---|---|---|
| Type | Optimistic | Optimistic | ZK Rollup | Optimistic |
| TVL | $15B+ | $7B+ | $800M+ | $8B+ |
| Withdrawal Time | 7 days | 7 days | Minutes | 7 days |
| EVM Compatible | Yes | Yes | Yes | Yes |