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Layer 1 vs Layer 2 | Simple guide to Blockchain scaling solutions
1. What is Lightning Network?
✅ A Layer 2 solution for Bitcoin that enables instant payments
2. What is Layer 1 in blockchain technology?
✅ The main blockchain where all transactions are recorded
3. What analogy was used to describe Layer 1 congestion?
✅ A busy motorway during rush hour
4. What do zero-knowledge rollups use to verify transactions?
✅ Cryptography to prove everything upfront
5. How much can Lightning Network reduce Bitcoin transaction fees according to the video?
✅ From $2.80 to $0.001
6. What happens when Layer 1 networks get congested?
✅ Fees go up and transactions slow down
7. What is the relationship between Layer 1 and Layer 2?
✅ They work together - Layer 1 provides security, Layer 2 provides speed
8. What is the main purpose of Layer 2 solutions?
✅ To process transactions off the main chain and improve speed
9. What do optimistic rollups assume about transactions?
✅ Everything is fine unless someone objects
10. Which Layer 2 solutions were mentioned for Ethereum?
✅ Arbitrum and Optimism
11. How much money is locked in Layer 2 solutions as of 2025?
✅ Over $42 billion
12. Which of these is an example of a Layer 1 blockchain?
✅ Bitcoin
5 must-have tools to DYOR in crypto | Research before you act
1. What does GitHub activity tell you?
✅ Whether developers are actively building.
2. Why should you care about token unlocks?
✅ They can affect a token's price significantly.
3. Why is checking on-chain data useful?
✅ It helps verify if a project has real usage.
4. What do CoinGecko and CoinMarketCap help you track?
✅ Real-time price, market cap, and supply.
5. Why is reading a project's whitepaper important?
✅ It explains what the project does and how it works.
6. What does “Do Your Own Research” mean in crypto?
✅ It means using tools to make informed decisions.
7. Why are CoinGecko and CoinMarketCap important?
✅ They provide essential coin data in one place.
8. What do platforms like TokenUnlocks show?
✅ Upcoming token release schedules.
9. What does Etherscan allow you to see?
✅ Real wallet activity and smart contract data.
10. Why can the crypto space feel overwhelming?
✅ Because there's hype, speed, and tons of projects.
11. How can social platforms help with research?
✅ They show real community engagement.
12. What's a red flag in crypto
communities?
✅ Silence or constant hype without answers.
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