Layer 1 solutions in blockchain refer to changes or updates made at the underlying protocol level of a blockchain network. This includes modifications to the core codebase or consensus mechanism of the blockchain itself. Examples of Layer 1 solutions include Ethereum 2.0 and Polkadot.
Layer 2 solutions, on the other hand, are scalability solutions built on top of existing blockchain networks to improve transaction throughput and efficiency. These solutions aim to reduce the burden on the main blockchain by processing transactions off-chain or through sidechains. Examples of Layer 2 solutions include the Lightning Network for Bitcoin and the Raiden Network for Ethereum.
