Understanding Tier 1 vs. Tier 2 in Blockchain and Finance

In Finance:
Tier 1 Capital: Core, highly liquid assets (like equity) that banks use to absorb losses and maintain stability.
Tier 2 Capital: Supplementary, less liquid assets like subordinated debt, which are used in times of financial stress.
In Blockchain:
Tier 1 Blockchains: Independent blockchains like Bitcoin and Ethereum that handle transactions and security.
Tier 2 Solutions: Systems built on top of Tier 1 (e.g., Lightning Network or Polygon) to improve speed and reduce fees.
Whether in finance or blockchain, Tier 1 is the core foundation, while Tier 2 adds layers of improvement or support.