Question 1

What is Layer 2 (L2)?

Accepted Answer

Layer 2 refers to scaling solutions built on top of Ethereum mainnet (L1) that process transactions off-chain and post results to L1. Types include Optimistic Rollups (Arbitrum, Optimism) and ZK Rollups (zkSync, StarkNet), enabling faster and cheaper transactions.

Question 2

What does L2 TVL signify?

Accepted Answer

L2 TVL represents the total value of assets bridged and locked in an L2 network. Higher TVL indicates a more active ecosystem, and TVL share shows competitive positioning in the L2 market.

Question 3

What to consider when choosing an L2?

Accepted Answer

Consider TVL (liquidity), gas fees (transaction costs), number of supported DeFi protocols, security model (Optimistic vs ZK), and withdrawal wait times. L2s with high TVL and diverse DApps are generally safer and more useful.

Layer 2 Overview

Frequently Asked Questions