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Why Pi network L1&L2 on OKX?
The reasons can be detailed as follows:
1. Layer 1 (L1) - The Foundational Blockchain
Layer 1 refers to the primary or underlying blockchain network (Mainnet).
Infrastructure: Pi Network has its own proprietary blockchain (based on the Stellar Consensus Protocol). Transactions are directly recorded and verified on this main network.
Security: Much like Bitcoin or Ethereum, Pi Network is considered an L1 because it operates its own nodes and maintains its own security validation mechanisms.
2. Layer 2 (L2) - The Scaling Network
Layer 2 is a network built on top of the main blockchain (L1) to increase transaction speed or provide additional services.
Speed and Low Fees: These are solutions that process transactions off-chain to prevent congestion on the main network, eventually reporting the final state back to the L1.
Ecosystem: Pi Network may utilize L2 structures to make the platform more hospitable for various Pi Apps and marketplaces.
Why are both terms used?
On trading platforms (such as OKX, as seen in your image), "Layer 1 & 2" might be listed for the following reasons:
Versatility: While Pi Network is fundamentally an L1, it is expected to use L2 technologies in the future to bridge with other networks or streamline transaction efficiency.
Technology Tagging: Exchanges use these tags to categorize a project. It signals that the project has its own blockchain (L1) and is also compatible with smart contracts or secondary applications (L2).
V26.0 Update: New software versions, such as V26.0, often enhance the blockchain's scalability. This update brings the project closer to modern Layer 2 solutions.
In short: Think of Layer 1 as the main "highway," while Layer 2 represents "express lanes" or "overpasses" built to reduce traffic congestion on that highway. Pi Network aims to combine both to build a fast and secure payment system.
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