An L2 application layer refers to the software and decentralized applications built atop a Layer-2 scaling solution. These applications process transactions off the main blockchain, benefiting from increased speed and reduced costs. They leverage the security of the underlying Layer-1 network while providing enhanced functionality. This layer supports a wide array of user-facing services.
Context
The expansion of the L2 application layer is a central theme in blockchain news, driving innovation in decentralized finance and other digital sectors. Developers are actively building new applications to capitalize on the scalability offered by Layer-2 solutions. The competition among various L2 platforms influences the adoption and growth of these applications.
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