Layer 1 vs Layer 2 refer to two approaches for enhancing blockchain scalability and efficiency. Layer 1 is the base blockchain protocol, like Bitcoin or Ethereum, which handles transactions and data storage directly on the blockchain. However, Layer 1 often faces scalability challenges. Layer 2 is built on top of Layer 1 to enhance transaction speed and reduce fees, using solutions like state channels or rollups. Layer 2 solutions enable faster, more scalable blockchain networks without altering the underlying protocol.
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