❓ What’s Layer 1 vs. Layer 2? Let’s Use LUNC/USDT as an Example! 🤔
In the screenshot above, LUNC/USDT highlights the term "Layer 1/Layer." But what does it mean? 🤷
Layer 1 🏗️
This refers to the Terra Classic blockchain (LUNC’s foundation). It's the core blockchain responsible for validating transactions, maintaining security 🔒, and ensuring the system runs smoothly. Think of it as the "main road" for all data.
Layer 2 🌐
Layer 2 solutions build on top of Layer 1 to handle high transaction volumes more efficiently ⚡, reduce fees 💰, and improve user experience. While this screenshot doesn’t specify a Layer 2 for LUNC, blockchain networks often use these solutions to address scalability challenges.
In the chart, we see LUNC/USDT trading at 0.00010359 (+1.77%) with significant 24h volume (59.74B LUNC). These metrics emphasize the activity on the Layer 1 blockchain. Layer 2 solutions could enhance this further by making transactions even faster and cheaper! 🚀
🔔 Do you think LUNC needs Layer 2 solutions for better scalability? Let’s chat below! 💬 #BinanceSquareTalks #OnChainLendingSurge $LUNC