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Layer 2

Protocols built on top of a Layer 1 blockchain to improve scalability or add functionality.

Hydra is Cardano's Layer 2 solution.

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Layer 1The base blockchain protocol itself, where transactions are finalized and the consensus rules are enforced; Cardano is a Layer 1.View term
HydraA Layer 2 scaling solution for Cardano using state channels (Hydra Heads) to enable fast, low-cost transactions off the main chain.View term