Blockchain infrastructure has evolved to encompass an ecosystem of layer-1 and layer-2 networks.

In this article we’ll explore the difference between the two, and how layer-2 networks and other scaling methods like sidechains attempt to address the scalability challenges of layer-1 blockchains.

What are layer-2 networks?

Simply put, layer-2 networks are mainnet for the first time, opening up the possibility of using rollups to scale Bitcoin. Solana is also seeing increasing layer-2 activity, such as via the gaming-centric Sonic SVM network.

Meanwhile, new layer-2 networks continue to spring up on Ethereum. In October 2024, decentralized exchange Uniswap announced plans to develop its own layer-2 network, Unichain, using Optimism technology, plus centralized exchange Kraken will launch its own Optimism-based layer-2 called Ink.

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