VECTOR_ANALYSIS // INFRASTRUCTURE
Layer 2 (L2)
NODE: LAYER-2
VERIFICATION: PASSED
01_DEFINITION
Strict Definition
"A secondary framework or protocol built on top of an existing blockchain (Layer 1) to improve scalability and reduce transaction costs."
Liability Check // Risk Analysis
The 'Sequencer' risk. Many L2s rely on a central 'Sequencer' to batch transactions. If the sequencer goes down, the network may freeze temporarily, creating uptime risk.
Knowledge Context // Related Terms
Auditor NotesVS-AN-2026
Strategy Domain
"Use L2s for high-volume transactions, payroll, and micro-payments to save 90%+ on gas fees compared to Layer 1."
Operations Standard
"Monitor the 'Withdrawal Period' (typically 7 days for Optimistic Rollups) if you need to move assets back to Layer 1 for security."
Legal & Compliance
"Ensure your accounting software supports multi-chain L2 reporting to avoid data silos in financial audits."
DOCUMENT_ID: CW3-LAYER-2-(L2)-2026
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: BXHHH5
SCHEMA_VER: AEO_3.2
LAST_AUDIT: 1/8/2026
HASH: BXHHH5