🏗️ What Are Blockchain Layers?

Think of crypto like a cake — and layers are what keep everything tasty and functional.

🍰 Layer 1 (The Cake Base)

This is the main blockchain, where everything begins.

Examples:

• Bitcoin
• Ethereum
• Solana

On Layer 1, you can:

• Make transactions
• Run smart contracts
• Stake coins
    

But it's often slow and pricey when too many people use it at once.

🍦 Layer 2 (The Frosting on Top)

Layer 2 solutions sit on top of Layer 1 to make things faster and cheaper.

Examples:

• Polygon (on Ethereum)
• Lightning Network (on Bitcoin)

These handle lots of transactions off the main chain and then settle them back to Layer 1 — like batching your laundry instead of doing one sock at a time.

🔁 Why Scalability Matters

Scalability means:

How well a crypto network can handle lots of users and transactions at once. Imagine your favourite coffee shop — it's fine when there’s just you and a couple of mates, but if the whole town shows up? Chaos. 

Crypto networks are kind of the same. As more people use them, the system needs to process more data, faster and cheaper — without crashing or charging £50 in fees. 

That’s where solutions like Layer 2s and upgrades like Ethereum 2.0 come in — they’re like adding extra baristas and espresso machines so the line moves quicker. 🚀

Without scalability, crypto stays small. With it, it can go global.

Time to look at RWA's and Tokenisation which has a very exciting future in crypto.