Layer 2 is a term generally used to describe protocols that are built on top of existing blockchain networks. The most well-known Layer 2 protocol is probably the Lightning Network, which is a solution for increasing the scalability of Bitcoin.
The Lightning Network is a second-layer payment protocol that operates on top of a blockchain network. The protocol was developed to address the scalability issues that have hindered Bitcoin’s mass adoption as a payments platform.
The Lightning Network allows users to transact without having to wait for confirmations from the underlying blockchain. This increases the speed and efficiency of payments, as well as reduces transaction fees.
The Lightning Network also has the potential to increase the security of payments, as it uses smart contracts to enforce the terms of each transaction. This could potentially eliminate the need for third-party intermediaries, such as banks or payment processors.
The Lightning Network is still in development and is not yet available for mainstream use. However, it has the potential to change the way we use Bitcoin and other cryptocurrencies for payments.