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Layer 1 vs Layer 2

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Layer 1 vs Layer 2 are terms that refer to different layers of blockchain infrastructure. Layer 1 is the base blockchain, such as Bitcoin or Ethereum, which handles the core protocol, consensus mechanisms, and security. Layer 2, on the other hand, is a secondary framework built on top of Layer 1 to enhance scalability and speed. Layer 2 solutions, like the Lightning Network or Optimistic Rollups, process transactions off-chain or in parallel to reduce congestion and improve transaction throughput.

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