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Layer 2
Capacity and performance

Layer 2

A separate blockchain built on top of a Layer 1 that processes transactions independently. It relies on the Layer 1 for security and final settlement, but operates outside of what the Layer 1 itself directly handles.

TradFi equivalent
In traditional finance...
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TradFi equivalent
A payment processor like Visa or Mastercard. They process millions of transactions per day using their own networks, independent of any involvement from the Fed, then settle the net results through the banking system.
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Analogy
In everyday terms...
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Analogy
A self-checkout lane. The main checkout handles everything. The self-checkout moves smaller, simpler transactions faster without replacing the main system.
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