Making Sense of Based Rollups on Bankless

While tokenized incentives make the untrusted networks safe, they also make them very slow. Public and permissionless networks can only handle a few transactions per second, which makes them unfeasible for large-scale applications with high transaction volumes. However, various technological solutions are currently being proposed and implemented to... See more

The Bitcoin network and other distributed ledgers all represent a collectively maintained public infrastructure and are the backbone of the next generation Internet, what the crypto community refers to as the Web3.

For our purposes here, we will just draw a simple distinction between L1s and L2s:

• L1 – Network relies on its own dedicated operators.


• L2 – Network relies on the operators of another network. It may or may not have its own dedicated operators in addition to these.

At their core, L2s are deeply linked with Ethereum. They share its DNA — relying on ETH as the currency, benefitting from Ethereum's security blanket, and utilizing it for data storage and settlement. It's like a startup leveraging its parent company's infrastructure and brand recognition, a win-win for both.