Layer 2
Polygon is a Layer 2 (technically a sidechain/hybrid, but often grouped). Arbitrum, Optimism, and Base are other L2s.
Prediction Markets 101 editorial team Updated April 16, 2026 1 min read
Definition
Layer 2 (L2) is a scaling solution built on top of a base blockchain (like Ethereum) to provide faster and cheaper transactions.
Plain-English explanation
L2s inherit most of the base chain's security while providing far higher throughput and lower fees. For applications like Polymarket, L2 economics are essential — mainnet gas would make retail trading unviable.