Definition
A layer 2 processes transactions outside a base layer while using the base system for data, proofs, settlement, or dispute resolution according to its design.
Simple example
An Ethereum rollup executes many transactions and posts compressed data or proofs back to Ethereum.
Often confused with
Not every sidechain is a layer 2. Operator controls, data availability, proof systems, and withdrawal paths differ between networks.
Source
See something wrong? Brokzi logs material changes. Prepare a correction note.
