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What are Blockchain Layers 0,1,2, and 3? Crypto ExplainedMultiple blockchain levels can be built upon a mainchain, with each level Layer-1 and Layer-2 scaling solutions are two sides of the same crypto coin. Layer 2 is a protocol built on top of the main blockchain to enhance transaction speed and reduce costs, often employing sidechains or state channels. Layer 2 coins offer a range of benefits, including scalability, reduced costs, faster transactions, energy efficiency, enhanced privacy.