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Glossary

Layer 2 (L2)

A network built on top of a blockchain to scale it.

A layer 2 is a network built on top of a base blockchain (the layer 1) that processes transactions faster or cheaper, settling back to the base chain for security. Rollups and payment channels are the common designs.

Mining happens on layer 1: a layer 2 has no miners of its own, it inherits security from the chain beneath it.

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