Decrypt outlines Vitalik Buterin’s definition of Stage 1 Layer 2 networks, which aim to scale Ethereum by processing transactions off-chain. At this stage, Layer 2 solutions like optimistic and zk-rollups focus on essential scalability features, rely on basic security assumptions from the main Ethereum chain, and offer preliminary interoperability. The user experience is improved but still evolving. Stage 1 networks are foundational, setting the stage for more advanced solutions that will enhance security, interoperability, and user experience in future stages, all while aiming to maintain Ethereum’s decentralized ethos.