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Layer 2 technologies

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**Layer 2 technologies**

What is Layer 2 technologies?

Layer 2 technologies are protocols that operate on top of a base blockchain (Layer 1) to improve its scalability and transaction speed. They achieve this by handling transactions off-chain, reducing the burden on the main chain. Common examples include payment channels, rollups, and sidechains. They are used to achieve faster and cheaper transactions without compromising security (although some Layer 2 solutions have their own security assumptions).

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