Hey! đ Do you want to become, or you are already a hodler?
I would like to use this article to help you choose your new cryptocurrency.
In crypto, Layer 1 (L1) and Layer 2 (L2) mainly refer to scalability solutions for blockchains (how to handle lots of transactions quickly and cheaply).
Layer 1
The base blockchain itself (the âmainâ chain).
Has its own security and consensus mechanism (Proof of Work for Dogecoin/Bitcoin, Proof of Stake for most others, etc.).
All transactions are recorded directly here.
It's the ultimate source of truth â final settlement happens on L1.
Problem with L1: Usually limited capacity (TPS â transactions per second), because it prioritizes maximum decentralization and security â slow and expensive during peak times. (Dogecoin does better here with ~1-minute blocks and very low fees, making it great for payments/tips.).
Security:
Native (highest)
Speed:
5â150 TPS (Solana exception ~65k; Dogecoin ~40 TPS but very consistent)
Transaction cost:
$0.01â$50+ (Ethereum peaks; Dogecoin usually <$0.01)
Decentralization:
High
Final settlement:
Immediate on-chain
Examples:
Bitcoin, Ethereum (mainnet), Solana, BNB Chain, Cardano, Avalanche, Sui, Aptos, Dogecoin (DOGE), etc.
Layer 2
Scaling solutions built on top of an L1 that natively support smart contracts. (mostly on Ethereum).
Does not have its own independent security â it inherits security from L1 (mainly Ethereum).
Processes transactions off the main chain (off-chain / via rollups) â much faster and cheaper.
After batches of transactions (or periodically), it sends a summary (proof) back to L1.
In 2026, most new DeFi, gaming, NFTs, social apps, and micro-transactions run on L2s, because pure Ethereum L1 is often too expensive for everyday use. Leading ones right now (by TVL/activity) include Arbitrum (DeFi king), Base (fastest growing, Coinbase-backed), Optimism, and various ZK options. Dogecoin shines more as a pure payment/meme asset on its L1.
Security:
Inherited from L1 (very high, but dependent)
Speed:
1,000â100,000+ TPS
Transaction cost:
$0.0001â$0.20 (often under 1 cent)
Decentralization:
Medium to high
Final settlement:
Depends on L1 (usually minutes to days)
Examples:
Arbitrum, Base (Coinbase's L2), Optimism, zkSync, Starknet, Polygon (zkEVM and others), Mantle, Linea, Scroll, Blast, etc.
(On Bitcoin: Lightning Network, Ark, Stacks, and newer ones. Dogecoin doesn't have major native L2s dominating yet, though community projects like Dogechain or proposals for ZK/L2 compatibility exist.)
One-sentence summary (2026 perspective):
L1
âa super-secure main highway with only a few lanes â safe, but can get congested and expensiveâ (Dogecoin is like a fast, fun side road on that highway, great for quick trips/payments)
L2
âexpress lanes and bypass roads built right on top of that highwayâ â way faster and cheaper, but the final security and truth still come from the main L1 highway
Grok helps me with data collection and evaluation ;-) try it too.