Layer 2 protocols: Common Questions

Atomic Wallet now supports Layer 2 protocols! Check out this article to learn more about what Layer 2 (or L2) protocols are and how they work.


What is a Layer 2 protocol? 

In the context of blockchain technology, Layer 2 protocols refer to secondary systems built on top of a blockchain to improve scalability, and speed, and reduce costs. These protocols allow more transactions to take place without clogging up the main blockchain, and they can reduce the fees associated with each transaction.

Layer 2 protocols work by leveraging the security and decentralization of the underlying blockchain, while handling most of the transaction processing off-chain. They use smart contracts and cryptographic techniques to enable the processing of transactions outside the blockchain while keeping the necessary information on the main chain.

What are the pros and cons of a Layer 2 protocol?

The benefits of Layer 2 protocols include improved scalability, faster transaction processing, and lower fees. They also allow for more complex applications and use cases to be built on top of the blockchain, without putting additional strain on the underlying network.

One potential downside to Layer 2 protocols is the added complexity they introduce to the overall blockchain ecosystem. Additionally, some Layer 2 solutions may require users to lock up their funds in a smart contract, which could pose a security risk if the contract is compromised.

What L2 protocols are supported in Atomic Wallet? 

As of right now, we support Optimism with Arbitrum coming later this month. 


Optimism is a layer-2 scaling solution for the Ethereum blockchain that aims to increase transaction throughput and reduce gas fees. It works by creating an off-chain environment where transactions can be processed faster and cheaper than on the main Ethereum network.

The native token of the Optimism network is called OPT, and it is used for transaction fees and governance of the protocol. Ethereum that is bridged to Optimism is represented by the token, Optimistic Ethereum (ETHOP). Optimism has been gaining popularity in the blockchain community, as many developers and users look for ways to improve the scalability of Ethereum and other blockchain platforms. 

Atomic Wallet supports both ETHOP and OP as well as all of the tokens of the Optimism network. All you need to do is to deposit a token on the OP network to your ETHOP address and you'll see them in your wallet. 


Arbitrum is a layer 2 scaling solution for the Ethereum blockchain that helps to increase scalability by allowing developers to create decentralized applications (dApps). It is a layer on top of the Ethereum blockchain that offers faster transaction speeds and lower fees. Arbitrum operates on an optimistic roll-up technology, which is a type of layer 2 scaling solution that reduces the amount of data that needs to be stored on the blockchain, decreasing the transaction fees as well. It offers developers a faster, more efficient way to build decentralized applications that are secure and cheaper than those built directly on the Ethereum network.

ARB, along with all of the tokens is fully supported by Atomic Wallet. If you have a token on the Arbitrum network that you wish to keep in Atomic Wallet, all you need to do is simply send it to your ARB address!

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