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Network Comparisons

Layer 1 vs Layer 2 Networks

A simple explanation of Layer 1 and Layer 2 networks, why they exist, and what users should check before moving assets.

Network map

What this means

A Layer 1 is a base blockchain, while a Layer 2 generally builds on top of a base chain to improve cost, speed, or scale.

Core ideas

What to understand first

  • Ethereum and Bitcoin are examples of Layer 1 networks.
  • Base, Arbitrum, and Optimism are Ethereum Layer 2 networks.
  • Layer 2 assets are not automatically the same as mainnet assets.
  • Bridges often connect Layer 1 and Layer 2 environments.

User checklist

What to check before moving assets

  1. Confirm whether your asset is on mainnet or an L2.
  2. Use the correct network in your wallet.
  3. Check bridge source and destination.
  4. Keep the right gas token on the right network.

Risk note

Common mistakes to avoid

  • L1/L2 confusion causes missing balances and wrong deposits.
  • Bridges introduce extra waiting and security assumptions.
  • Token contract addresses differ across layers.
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