What is Layer-2 Layer-2 (L2) refers to a set of scaling solutions built on top of an existing blockchain protocol (like Bitcoin or Ethereum), which we consider as "Layer 1." The purpose of Layer 2 solutions is to improve the performance, scalability, and efficiency of the underlying blockchain.Source: https://www.8btc.com/media/6699616Ethereum and Layer 2 solutions can be analogized with central banks and local banks to understand their roles in the blockchain ecosystem. Ethereum, akin to a c...