Layer 2 vs Transaction Fee

Quick comparison to help you distinguish these two crypto terms.

Layer 2
intermediate
fundamentals

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.

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Transaction Fee
beginner
fundamentals

The amount paid to blockchain network validators for processing and confirming cryptocurrency transactions, compensating miners or validators for computational resources and network security.

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