"Ethereum is unusable! you need $50 to move $5"

"People never use their crypto, that's why they don't understand how slow it is!"

"Bitcoin is slow, that's why adoption is impossible"

Sounds familiar? I bet that if you lurk this very sub for a while you'll run into comments like these. It seems that there's a generalized misconception of how transacting is meant to be approached by end users, and how partitioned networks have become in order to allow for scalability and speed, so let's address it!

What is an L1 network?

Layer-one network refers to the main blockchain layer in a decentralized network. It is the foundational layer on which the entire blockchain ecosystem is built and operates. L1 networks are responsible for processing and validating all transactions, executing smart contracts, and maintaining the overall security and consensus of the blockchain. They act as the main settlement layer in which all transactions finalize and become engraved into the blockchain.

What is an L2 network?

Layer-two networks are a secondary framework built on top of a blockchain's mainnet to enhance its scalability, speed, and cost-effectiveness. The main goal of L2 networks is to address the limitations and bottlenecks of the main blockchain, typically associated with high transaction fees and slower confirmation times due to network congestion. They act as funnels through which various transactions become bundled together (this is called a rollup) before being sent to the settlement layer to be finalized, which greatly increases the cost-efficiency of the whole process.

Great, now you're up to speed.

Drawing from this short explanation of these concepts, one should immediately understand how L2 networks are designed to be the main way end-users interact with the underlying foundational layer, and how approaching this the other way around will inevitably produce setbacks.

First off, using the base layer will NOT be cheap, because it lacks the cost-efficiency optimization L2's provide (and understandably so). It might prove useful for a certain type of user, namely, the kind of user who holds millions in a wallet and wants those funds to be protected by the full security of the L1 layer.

This kind of user is fully willing to give up speed and transaction cost for the sake of security, it's a trade-off they understand because they know what they're doing. We're talking about institutions, protocols, and rich people.

Then, how is the average Joe supposed to use their crypto? It should be evident by now that the answer is "through L2 networks". That's the whole point they exist in the first place.

Leveraging L2s will allow you to transact at higher speeds for cheaper, with some L2 networks having fees as low as under a cent and near-instant transaction confirmation:

A transaction on the Bitcoin network will take around 10 to 20 minutes on average. That's SLOW. Of course, if you're a bank moving funds to another subsidiary you simply don't care, but it's clear that this won't work for everyday payments. To make these everyday payments, instead, you should opt to use Bitcoin's L2, the lightning network, which will settle transactions instantaneously (or in a few seconds at most).

A token swap on Ethereum Mainnet will cost around $12 at the time of writing, and it'll take around 30 seconds to a minute to be added to the blockchain. Compare that to using Polygon PoS, where that same swap will cost $0.10 and take 5 to 30 seconds. Even if you use costlier L2s like Starknet, that swap gas cost goes down to less than a dollar ($0.48 at the time of writing), so still twelve times less or so.

Understanding these hierarchical blockchains model is essential for anyone willing to actually use their crypto, as it not only opens up different setups for different kinds of users, it empowers you by allowing you to transact the way you see fit for yourself without limiting or hand-holding you.

If you read this far then by now you're an educated degen, or as I refer to those, an absolute chad. You should have enough ammo to be able to respond whenever an undercover normie whines about gas in the comment section. Just click on comment and write in all-caps "SHUT UP YOU'RE DOING IT WRONG".

Cheers!

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