What's the difference between a layer2 and a layer 1 token in cryptocurrency
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Layer 1 tokens (like Bitcoin or Ethereum) are built directly on a base blockchain. They run on the main network and secure the whole system. That’s why ETH pays gas fees on Ethereum itself—it’s native. Layer 2 tokens (like MATIC or Arbitrum’s ARB) are built on top of a Layer 1 to solve problems likeRead more
Layer 1 tokens (like Bitcoin or Ethereum) are built directly on a base blockchain. They run on the main network and secure the whole system. That’s why ETH pays gas fees on Ethereum itself—it’s native.
Layer 2 tokens (like MATIC or Arbitrum’s ARB) are built on top of a Layer 1 to solve problems like high fees and slow transactions. They don’t replace the base chain; they just help it scale.
Quick breakdown:
Layer 1 = main blockchain (ETH, BTC, BNB)
Layer 2 = upgrade or extension (Polygon, Optimism, Arbitrum)
If the internet was a road, Layer 1 is the highway. Layer 2 is the flyover added to ease traffic.
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