CRYPTO GLOSSARY

Layer 2

A separate network built on top of Ethereum. It processes transactions more cheaply and records its data back on Ethereum.

Layer 2 in more detail

Ethereum also has layer 2 networks built on top of it, which are cheaper to use. Each of those is a separate ledger too.

A popular stablecoin may be issued on Ethereum, on several layer 2 networks and on unrelated blockchains. These are different tokens that share a name.

FROM LESSON 33 · 5 MIN READNetworks and bridges: avoiding wrong-chain mistakesThe same token can exist on several blockchains, and sending it over the wrong one can lose it. Learn how networks, bridges and wrapped tokens work.Read the lesson

All 128 terms · Checked against the lesson's sources on 8 October 2026.

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