How do layer 1 and layer 2 solutions contribute to the scalability of cryptocurrencies?

1 answers

• Suyog PatilNov 02, 2024 · 9 months ago
  Layer 1 solutions are like the foundation of a building, providing the necessary infrastructure for cryptocurrencies. They improve scalability by making the base layer more efficient and capable of handling a larger number of transactions. Layer 2 solutions, on the other hand, are like additional floors added on top of the foundation. They allow for faster and cheaper transactions by moving some of the workload off-chain. This combination of layer 1 and layer 2 solutions is essential for the scalability of cryptocurrencies.
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