Layer 2 networks are independent blockchain networks built on top of existing Layer 1 blockchains. They are designed to address the scalability challenges while inheriting security from the underlying Layer 1:

• Increased speed: Layer 2 solutions can process transactions much faster than their parent chains
• Reduced costs: Transaction fees on Layer 2 networks are typically a fraction of Layer 1 fees
• Inherited security: By connecting to the Layer 1 blockchain, Layer 2 solutions leverage the security of established networks

Layer 2 solutions achieve these benefits by handling transactions off the main chain while periodically anchoring their state to the Layer 1 for security. This approach allows them to operate with fewer nodes while maintaining robust security guarantees.