Layer 2 vs Lightning Network

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.

Lightning Network is Bitcoin's primary Layer 2 scaling solution that enables instant, low-cost payments through off-chain payment channels, processing thousands of transactions per second while inheriting Bitcoin's security by periodically settling on the Bitcoin blockchain.