Layer 2 vs Throughput

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.

Throughput in blockchain refers to the number of transactions a network can process per second (TPS), with Bitcoin's base layer handling approximately 5-7 TPS due to its 10-minute block time and block size limits, deliberately trading speed for security and decentralization.