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About BIBIBI Daily Digest Privacy & Account Security

For information and learning only. Not investment advice. Crypto assets involve risk.

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Glossary

Terms7 shown

Layer 1The underlying blockchain network that provides final settlement and foundational security for Layer 2.
Layer 1 and Layer 2Layer 1 is a base blockchain network, Layer 2 is a scaling network built on it, which can handle high-frequency activity and reduce usage costs.
Layer 2A secondary protocol or framework built on an existing blockchain to offload transaction processing, increase speed, and reduce costs.
Layer 2 SolutionRefers to scaling protocols built on top of existing blockchains that improve scalability through mechanisms such as state channels, sidechains, or rollups.
opBNBopBNB is built on BSC and uses optimistic rollup technology as a Layer 2 scaling network to increase throughput and reduce costs.
Bitcoin Layer 2A protocol built on Bitcoin that processes certain transactions or computations outside the main chain and submits the relevant results or state back to the Bitcoin network.
Lightning networkA Layer 2 solution in the Bitcoin ecosystem that uses state channels to process multiple transactions off-chain, typically recording only channel openings and closures on the Bitcoin blockchain.

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Definition

Bitcoin Layer 2

A protocol built on Bitcoin that processes certain transactions or computations outside the main chain and submits the relevant results or state back to the Bitcoin network.

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