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Layer 1
A layer 1 is a base blockchain, such as Bitcoin or Ethereum, that records and settles transactions itself. It has its own network of nodes, its own block producers and its own consensus mechanism — the rules nodes use to agree on the history.
What it means for you. Fees and confirmation times on a layer 1 are set by that chain alone, and a payment it settles cannot be reversed by any company. Coins on different layer 1s are separate: bitcoin cannot be sent to an Ethereum address, and moving value between them needs a bridge or an exchange.
Source: ethereum.org: Layer 2 (Layer 1 vs Layer 2) · checked 4 October 2026
Layer 2
A layer 2 is a separate blockchain that processes transactions off a base chain such as Ethereum, then posts the results back to it. Batching many transactions into one posting spreads the base-chain fee across users, so each transaction usually costs less.
What it means for you. Funds on a layer 2 are not on Ethereum mainnet: to move them back you withdraw through the network's bridge, which on optimistic rollups takes roughly seven days. ethereum.org notes that no layer 2 is as tested as Ethereum mainnet; check which network a wallet is set to before sending.
Sources: ethereum.org: Layer 2, ethereum.org: Optimistic rollups, ethereum.org: Sidechains · checked 4 October 2026