Applications and software technology as a whole architecturally exists in the form of a “Stack”; Layers of technology piled on top of one another.
The scaling layer technology is commonly referred to as Layer 2 & Layer 2 is a term used within the cryptocurrency and greater digital asset industry to refer to the blockchain technology which leverages the consensus security of the base layer and increases the operational efficiencies; layer 2 is regarded as the scaling layer of a blockchain stack.
While there are no theoretic limitations as to how many layers can exist in a technology; when thinking in terms of blockchain technology there are generally up to 3 addressable layers.
examples of Layer 2’s:
– Lighting Network