The distinction between layer 1 vs layer 2 solutions is crucial in understanding blockchain scalability challenges. Layer 1 refers to the base layer of a blockchain network (like Bitcoin or Ethereum), which processes transactions directly on its chain. In contrast, Layer 2 solutions operate on top of Layer 1 networks to enhance scalability by offloading some transaction processing from the main chain. This allows for faster transaction speeds and reduced congestion while maintaining security through the underlying Layer 1 infrastruct...
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