Blockchain Trilemma vs Layer 2

The Blockchain Trilemma describes the fundamental challenge that blockchain networks can only optimize two of three critical properties simultaneously: decentralization, security, and scalability. This technical constraint forces every blockchain project to make strategic trade-offs that define its capabilities and limitations.

Layer 2 refers to secondary protocols and networks built on top of a blockchain's base layer (Layer 1) that process transactions off-chain while inheriting the security of the underlying blockchain, enabling higher throughput, lower fees, and faster confirmations without changing the base protocol.