Glossary / Layer 2

Layer 2

A layer 2 is a network built on top of a blockchain (often Ethereum) that bundles transactions to make them cheaper and faster. Base and Arbitrum are examples.

Why it matters

You get Ethereum security with fees of cents.

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Related terms

Ethereum (ETH)Ethereum is a blockchain that runs programs called smart contracts. ETH is its native coin…Gas feeGas is the fee paid to a blockchain to process a transaction, paid in the chain's native c…BridgeA bridge moves tokens from one blockchain to another.…

Written by the VaultX AI team. Educational only, not investment advice.

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