Guide

Layer 1, Layer 2: Understanding Modern Blockchain Architecture

What is Layer 1 (Ethereum, Bitcoin) and Layer 2 (Arbitrum, Optimism)? Dive into the blockchain hierarchy and their collaboration for scalability.

Exceefy
Exceefy20/12/2025 00:008 min read
Layer 1, Layer 2: Understanding Modern Blockchain Architecture

In the world of cryptocurrency, you often hear about "Layer 1" (L1) and "Layer 2" (L2). This terminology is not just technical jargon; it is fundamental to understanding how blockchains manage the famous Trilemma (Security, Decentralization, Scalability).

Modern architecture is no longer monolithic. It is hierarchical.

Discover why this distinction between the base layer (L1) and the scaling layer (L2) is crucial for the future of digital transactions, and how these two levels work together to achieve mass adoption.


🧭 Layer 1: The Foundation of Trust (The Base Layer)

Layer 1 is the main blockchain on which all other solutions rest. It is the backbone, the guarantor of the system's security and immutability.

The Essential Roles of Layer 1

L1 has three critical functions that it cannot outsource without losing its integrity:

  1. Consensus: This is the golden rule (Proof of Work for Bitcoin, Proof of Stake for Ethereum). L1 ensures that all nodes agree on the state of the chain. It is the legislative and judicial power of the network.
  2. Security: Due to its very high decentralization and the high cost of attacking it, L1 provides the security that L2s cannot generate alone.
  3. Settlement: L1 is the final court. All transactions, including those made on L2s, are ultimately validated and permanently and irreversibly recorded on this layer.
Examples of Layer 1 Main Characteristic
Bitcoin Maximum security and decentralization. Value base.
Ethereum Maximum programmability, smart contract support.
Solana, Avalanche Speed and low cost (often at the expense of less decentralization).

The Limit of Layer 1

As we saw with the Trilemma, L1 cannot be simultaneously ultra-secure, decentralized, and fast. If L1 is too fast, it must be more demanding in hardware resources, which eliminates small validators and leads to centralization.

Layer 1 is therefore deliberately designed to be slow (in terms of TPS) to guarantee its resilience.

This is where Layer 2 comes in.


πŸš€ Layer 2: The Performance Accelerator (The Scaling Layer)

Layer 2 is a secondary network that runs on top of Layer 1. Its role is to increase system throughput by offloading transactional work.

To use the highway analogy again:

  • Layer 1 is the very wide, very secure country road leading to the bank (where money is secured).
  • Layer 2 is the fast shuttle (the Rollup) that shuttles back and forth between the country road and the commercial zone (where daily purchases are made).

How Layer 2 Borrows Security from Layer 1

The magic of L2 lies in the fact that it does not need to create its own costly security. It borrows security from L1.

  1. Off-Chain Execution: The L2 executes and bundles thousands of transactions outside the L1.
  2. On-Chain Publication: The L2 periodically publishes a summary or proof of all these transactions on the L1 (via a smart contract).
  3. Security Inheritance: If an attacker tries to falsify a transaction on the L2, the L1 (Ethereum, for example) is there to detect the error (in the case of Optimistic Rollups) or to validate the mathematical proof (in the case of ZK-Rollups).

This is why Layer 2 solutions are said to be scaling solutions that inherit security.


πŸ”¬ Types of Layer 2: The Rollup Family

As previously mentioned, the main family of L2s are Rollups. They are divided into two subcategories, each with a different security mechanism.

Rollup Type Security Mechanism Withdrawal Speed Examples
Optimistic Rollups Fraud Proof (Challenge possible for 7 days). Slow withdrawals (must wait 7 days). Arbitrum, Optimism, Base
ZK-Rollups Mathematical Validity Proof (ZK-SNARKs cryptography). Fast withdrawals (because the proof is instantaneous). zkSync, Starknet, Scroll

This difference between L1 and L2 is not a mere evolution; it is a separation of tasks that defines tomorrow's modular architecture.


🀝 The Collaboration Model: The Modular Blockchain

The concept of a modular blockchain formalizes the separation of tasks between layers. The goal is to achieve maximum performance without compromising security.

Layer Role Function Who is involved?
Security/Settlement (L1) To be the final, secure anchor point. Ethereum, Bitcoin (indirectly)
Execution (L2) To process transactions ultra-fast. Arbitrum, Optimism, zkSync
Data Availability To ensure that the raw L2 transaction data is published. Ethereum (via enhancements like EIP-4844) and specialized projects like Celestia.

Layer 1 becomes the ultra-secure regulation body, while Layer 2 becomes the ultra-fast execution body.


πŸ“ˆ The Impact for the User and Investor

Understanding this architecture changes your investment and usage perspective.

For the User

  • Fees: L2s are orders of magnitude cheaper than L1s, making micro-payments and daily dApp usage viable.
  • Speed: Confirmation is nearly instantaneous on L2s.
  • Experience: The user must, however, manage "Bridges" to transfer funds between the L1 and the different L2s, which remains a point of friction and risk.

For the Investor

  • Valuation: The value of an L1 like Ethereum relies on its ability to provide security for a rapidly expanding L2 ecosystem.
  • Potential: The potential of an L2 relies on its technology (Optimistic vs. ZK) and its ability to attract users and developers thanks to its speed and low costs.
  • Risk: L2s are often younger, less tested, and sometimes more centralized than their L1. Their security is tied to the proper functioning of their "proof" on the L1.

Conclusion: The Future is Modular and Hierarchical

The Layer 1/Layer 2 architecture is the most elegant and mature answer to the Blockchain Trilemma.

By separating responsibilitiesβ€”security to L1 and scalability to L2β€”the ecosystem can finally consider mass adoption. L1 will continue to serve as the immutable foundation, while L2s will compete to offer the best execution at the best prices.

For investors, the era of specialization has arrived. The question is no longer "which monolithic blockchain is best?" but "which layer offers the best combination of security and performance for my objective?"

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Layer 1 vs Layer 2: Guide to Modern Blockchain Architecture