For Customers Log in
Contact Us

Layer-2 solutions Meaning

A broad category encompassing all the different ways to scale a blockchain at the second layer. This includes rollups, but also "State Channels" (like Lightning), "Sidechains" (like Polygon PoS), and "Plasma" chains.

Each solution makes different trade-offs. Sidechains are very fast but have their own security (separate from the L1).

State channels are perfect for 1-on-1 payments but don't support complex smart contracts. Rollups are considered the most "Ethereum-native" way to scale because they don't require users to trust a separate set of validators.

The "Layer-2 landscape" is a competitive ecosystem where different solutions vie for users and developers. For a user, the choice of which L2 to use usually depends on which decentralized applications (dApps) are available on that specific chain and how easy it is to "bridge" their assets from the main layer.

← Back to Glossary

Explore our services
Providing liquidity in the cryptocurrency market?
Authorize on our platform and do it smarter with FM Pulse.
pic

FM Marketplace

A reliable and high-performance crypto liquidity marketplace for institutions and businesses.

Learn more
pic

FM White Label

Launch your fully branded B2B crypto trading platform in under one week.

Learn more
pic

FM Liquidity Match

Crypto OTC-as-a-Service infrastructure for enhanced monetization and trade control.

Learn more

Scale your business, leave the hard work of your trading needs to us

Reduce your integration costs and operational risk across multiple access points with our platform

Get started