L2

Technology & Computing abbreviation · Cryptocurrency & Blockchain

L2
Stands forLayer 2
CategoriesTechnology & Computing

L2 stands for Layer 2, a cryptocurrency & blockchain abbreviation.

A network or protocol built on top of a base blockchain to process transactions more cheaply and quickly while relying on the underlying chain for security. Ethereum rollups such as Arbitrum, Optimism and Base, and bitcoin's Lightning Network, are L2s.

Example: Bridging to an L2 cut the swap fee from $8 to under 5 cents.

Usage notes

Optimistic rollups assume transactions are valid unless challenged during a dispute window, while ZK-rollups post cryptographic validity proofs. Ethereum's 2024 Dencun upgrade added cheaper "blob" data for rollups, sharply lowering their fees. Bridges between layers have been frequent targets of large hacks.

More cryptocurrency & blockchain abbreviations

  • ICO – Initial coin offering
  • IEO – Initial exchange offering
  • IL – Impermanent loss
  • IPFS – InterPlanetary File System
  • KYC – Know your customer
  • L1 – Layer 1
  • LN – Lightning Network
  • LP – Liquidity provider
  • LTC – Litecoin
  • MEV – Maximal extractable value
  • MiCA – Markets in Crypto-Assets (Regulation)
  • MPC – Multi-party computation

See all 74 cryptocurrency & blockchain abbreviations →

Edited by the AbbreviationList.com team. Spotted an error or a missing meaning? Contact us.