Layer 2 Overview

Understanding Bitcoin Layer 2 solutions and scaling technologies beyond the base chain.

What are Layer 2 Solutions?

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.

Lightning Network

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.

Spark

Spark is a self-custodial Lightning Layer 2 that simplifies Bitcoin and Lightning payments for developers. It provides a managed infrastructure while you maintain control of your keys. Spark handles the complexity of channel management, liquidity, and routing, making Lightning accessible without running your own node.

Emerging Layer 2s

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.

Why Layer 2 Matters

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.

Build on Layer 2

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.

Frequently Asked Questions