Layer 2 vs TPS (Transactions Per Second)

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.

Transactions Per Second (TPS) measures how many transactions a blockchain network can process in one second. This metric indicates network capacity and speed, helping users understand whether a blockchain can handle real-world usage demands or faces performance limitations.