Layer 2 vs Scaling Solution

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.

Any technology designed to increase a blockchain's transaction throughput, reduce fees, or improve speed without sacrificing security or decentralization, addressing the fundamental limitations of base layer networks.