Blockchain Networks Explained: Ethereum, Layer 2s, and Beyond

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Should you trade on Ethereum, Arbitrum, or Polygon? Understanding blockchain networks is essential for DeFi—the right choice can save you 90% on fees.

Layer 1 Networks (Main Chains)

Ethereum

  • Native Token: ETH
  • Typical Gas: $5 – $50 per swap
  • Best For: Large trades ($1000+), security-critical operations

Solana

  • Native Token: SOL
  • Typical Gas: $0.001 – $0.01
  • Best For: Frequent small trades, gaming, NFTs

Layer 2 Networks (Scaling Solutions)

Layer 2 (L2) networks are built on top of Layer 1s. They process transactions faster and cheaper while inheriting L1’s security.

  • Arbitrum: $0.10 – $0.50 per swap, best all-around choice
  • Polygon: $0.01 – $0.05 per swap, lowest fees
  • Base: $0.05 – $0.20 per swap, Coinbase ecosystem
  • Optimism: $0.10 – $0.30 per swap, growing ecosystem

Setting Up New Networks

The easiest method: Go to chainlist.org, connect your wallet, search for the network, and click “Add to MetaMask”.

Key Takeaways

  • L2 networks can save 90%+ on gas fees vs. Ethereum mainnet
  • Arbitrum is the best all-around choice for most DeFi trading
  • Use chainlist.org to safely add networks to MetaMask
  • The same wallet address works across EVM-compatible networks