Layer 2 vs Scalability

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.

The ability of a blockchain network to handle increasing numbers of transactions, users, and data without degrading performance, speed, or decentralization. Scalability measures how well a network grows to meet demand while maintaining efficiency and security.