Layer 2
Systems built on top of Bitcoin that trade some trust for speed or features.
In plain words
A layer 2 handles payments off Bitcoin's main chain and settles back to it. Lightning is the flagship; sidechains like Liquid are another breed. The design bargain: keep the base layer small and checkable by anyone, and let the layers above chase speed and features. The price: each layer adds its own assumptions. "Secured by Bitcoin" is a claim — read each design's fine print before you believe it.
Why it matters
- How Bitcoin scales without loosening the rules everyone checks.
- The trade-offs differ wildly: Lightning's are not Liquid's.
- Experiments stay off the base layer, where mistakes would be fatal.
Not to be confused with
- Altcoins — layer 2s move real bitcoin under extra assumptions; altcoins are different money entirely.
Go deeper
Updated 2026-07-29