Layer 2 Overview

Layer 2 protocols are built on top of Bitcoin's base layer (Layer 1) to enable new functionality and scalability. They inherit Bitcoin's security while enabling features like instant payments, smart contracts, and increased transaction throughput.

The most established Layer 2, Lightning enables instant, low-cost payments through payment channels. It's production-ready with growing adoption for everyday transactions and streaming payments.

RGB: Client-side validated smart contracts on Bitcoin. Stacks: Smart contracts with Bitcoin finality. Liquid: Federated sidechain for fast settlements. Rollups: Various rollup proposals for Bitcoin scaling. Fedimint: Federated Chaumian e-cash mints. Each approach offers different trade-offs between security, decentralization, and functionality.

Bitcoin's base layer prioritizes security and decentralization. Layer 2s enable scaling without compromising these properties. They unlock new use cases while keeping the base layer stable and secure.

Interested in building? Join our community to explore Layer 2 development, experiment with new protocols, and connect with other builders working on Bitcoin's scaling future.