10 Best Crypto Blockchain Layer 2 Projects in 2025
2025-03-10
Bittime - Discover the 10 best Layer 2 blockchain projects in 2025 that increase scalability, reduce transaction costs, and accelerate the crypto ecosystem. Read more here!
What is Layer 2 in Blockchain
Layer 2 is a scalability solution designed to increase the speed and efficiency of blockchain transactions without compromising security and decentralization.
Layer 2 works by processing transactions outside the main blockchain or Layer 1, then validating the results on Layer 1 to ensure transaction integrity.
Thus, Layer 2 enables increased transaction throughput and reduced transaction costs, making the blockchain better prepared for real-world applications such as DeFi and gaming.
Example of Layer 2 Technology
Some examples of popular Layer 2 technologies include rollups, state channels, and sidechains.
- Rollups such as Optimistic Rollups and Zero-Knowledge Rollups collect transactions and process them off-chain before sending proof to the main blockchain.
- State channels enables direct peer-to-peer transactions by locking a portion of the blockchain state in a dedicated channel.
- Sidechains such as Polygon operates as an independent chain connected to the main blockchain to increase scalability.
Difference between Layer 1 and Layer 2
Layer 1 is the base layer of the blockchain that handles key functions such as consensus and security. However, Layer 1 is often limited in terms of scalability and transaction speed.
Layer 2, on the other hand, extends the capabilities of Layer 1 by increasing speed and reducing transaction costs without sacrificing security. Although Layer 2 is faster and more efficient, its security may be slightly lower compared to Layer 1 because some processes are performed outside the main blockchain.
Read Also: What is a Layer 2 Blockchain Project?
10 Best Layer 2 Projects in 2025
Here are some of the best Layer 2 projects in 2025:
- Decision - Offers throughput up to 4000 TPS and reduces gas costs by up to 95 percent. More: https://arbitrum.io/
- Polygon - Provides a multichain ecosystem with a throughput of over 65000 TPS, ideal for DeFi and NFT applications. More: https://polygon.technology/
- Optimistic Rollups - Using Ethereum as a basis, allows faster and cheaper transactions while maintaining Ethereum security. More: https://ethereum.org/en/developers/docs/scaling/optimistic-rollups/
- Zero-Knowledge Rollups - Combine rollups with zero-knowledge proofs to improve privacy and scalability. More: https://zkrollups.io/
- Lightning Network (Bitcoin) - Enables faster and cheaper Bitcoin transactions via payment channels. More: https://lightning.network/
- zkSync - Offers a rollup solution with a focus on privacy and high transaction speed. More: https://zksync.io/
- StarkNet - Uses zero-knowledge proof technology to improve scalability and privacy on Ethereum. More: https://starkware.co/starknet/
- Bobabeam - Provides a fast and efficient rollup solution to improve user experience. More: https://boba.network/
- Celer Network - Using state channel technology to speed up transactions and reduce costs. More: https://www.celer.network/
- Hermitage - Offers innovative rollup solutions with a focus on security and privacy. More: https://hermitage.network/
Conclusion
Layer 2 projects have revolutionized the blockchain ecosystem by offering better scalability and efficiency without compromising security. With the ability to process transactions faster and at lower costs, these projects allow blockchain to be more widely adopted in a variety of applications.
FAQ
What is Layer 2 in blockchain?
Layer 2 is a scalability solution that processes transactions outside of the main blockchain to increase speed and reduce transaction costs.
What is the difference between Layer 1 and Layer 2?
Layer 1 handles basic blockchain functions such as security and consensus, while Layer 2 improves scalability and transaction speed.
What are the most popular examples of Layer 2 projects?
Some popular examples include Arbitrum, Polygon, and Optimistic Rollups.
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Author: Irwan
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