You can send and receive crypto with lower fees using Layer-2 (L2) networks instead of Ethereum (Layer-1). These networks reduce costs by processing transactions off-chain before finalizing them on Ethereum.
Currently, Status Wallet supports the following Layer-2 networks:
- You can lower your network fees and speed up your transactions by moving funds to a Layer-2 network.
- L2s like Arbitrum or Base inherit Ethereum's security. Your funds stay protected, even if you are saving on costs.
- You need to bridge your crypto whenever you transfer assets between an L2 network and Ethereum or between two different L2 networks.
| Feature | Ethereum | L2 networks |
|---|---|---|
| Fees | Higher | Lower |
| Speed | Slower | Faster |
| Security | Most secure | Inherits Ethereum's security with additional steps (1) |
| Governance | Highly decentralized | Varies (2) |
| Best for | High-value transactions | Everyday use: swaps, DeFi, collectibles, gaming |
(1) Layer-2 solutions are safe enough for daily transactions, but if you need the strongest possible guarantees, you may prefer to use Ethereum mainnet.
(2) Layer-2 governance models vary significantly. For example, while Optimism and Arbitrum are decentralized and community-driven, Base is a centralized network owned by Coinbase.
Using Layer-2 networks provides three main benefits:
- Lower fees: Layer-2 network fees are considerably cheaper than Ethereum.
- Faster transactions: Layer-2 networks process transactions often in seconds, compared to minutes or hours on Ethereum during peak hours.
- Access to more dApps: Many dApps are available on Layer-2 networks, providing access to more decentralized services.
You can use Layer-2 networks in Status Wallet just like you would use Ethereum. When sending crypto, choose the appropriate Layer-2 network for the transaction. For more information, check out Send crypto to someone.
You can use Layer-2 networks in Status Wallet only if you hold the corresponding tokens. For example, you need Arbitrum tokens in your wallet to use Arbitrum. If you need to move assets between networks, you must bridge the asset.
