Layer 2 network

A layer 2 network in blockchain technology is a third-party protocol that integrates with an underlying Layer-1layer 1 blockchain to increase transactional throughput. Layer 2 networks do this by shifting a portion of a blockchain protocol’s transactional burden to adjacent system architecture, handling the majority of the required processing capacity, only reporting back to the main blockchain to finalize its results. This keeps the base layer blockchain (layer 1) less congested and improves the scalability of the network.