Layer 1 networks form a blockchain's foundation. The main network, or "mainnet," specifies the ecosystem's rules and validates and finalizes transactions, as in Ethereum, Bitcoin, and Solana.

Layer 1 blockchains emphasize decentralization and security, which are essential elements of any good network and (with certain exceptions) maintained by a broad, worldwide network of developers and validators.

These platforms have no central authority or control, thus the technology must be secure to safeguard consumers from frauds and assaults. They've frequently lacked scalability due to this design emphasis and the massive resources needed to run a fully operating ecosystem.

While some developers believe that the Blockchain Trilemma—the inability to balance security, decentralization, and scalability—is an inexorable flaw of the technology, layer 2 solutions like Ethereum rollups and Bitcoin's lightning network can help.

Layer 2 off-chain solutions (independent blockchains) on layer 1s alleviate scale and data constraints. Like a restaurant kitchen, if every order had to be prepared by one person from start to finish before being verified and delivered, it would be slow and could only complete a few orders per hour. Layer 2s are like prep stations—cleaning and chopping food, cooking, and dish assembly—that may concentrate and work more effectively. A last person may validate each completed dish to the order before sending it to the consumer when the moment is perfect.

Visa uses a similar mechanism. Visa batching thousands of daily micro transactions from a seller like Starbucks to settle in the banking system at regular intervals instead than processing them individually, which would load the network in minutes. Banks store and classify transactions via their internal settlement layer. Visa would be layer 2 and the network of institutions and government that record transactions and set financial sector standards layer 1.

Ethereum employs optimistic and zero-knowledge (ZK) rollups to offload transaction management off the mainnet and increase transaction inclusion and throughput. It makes the user experience more fluid and practical. Arbitrum, Optimism, Loopring, and zkSync are Ethereum layer 2s.

Decentralization and security are hallmarks of Ethereum's layer 1, or mainnet, but market appeal has grown the network to 1.5 million daily transactions. The mainnet can only perform 15 transactions per second, hence increased network activity typically causes data congestion.

Layer 2 adds Ethereum as a blockchain atop layer 1 to address these concerns. It communicates and offloads the mainnet's massive transaction load using smart contracts that use Ethereum's powerful decentralized security mechanism. Layer 1 provides security, data availability, and decentralization.

Layer 2 offers lower costs by combining numerous off-chain transactions into a single layer 1 transaction, reducing data load. They maintain security and decentralization by settling mainnet transactions.

Layer 2 initiatives may improve user experience and grow applications with greater transactions per second and reduced prices.