# How is SatsChain different from L2s?

Satschain differentiates itself from Layer 2 (L2) solutions by operating directly on the native Bitcoin chain rather than relying on off-chain processing or separate consensus mechanisms. Key differences include:

1. **Native Integration:** Satschain incorporates smart contracts directly into the Bitcoin blockchain, ensuring that all transactions are as secure as Bitcoin’s own transactions. This contrasts with L2 solutions, which typically process transactions off-chain.
2. **Security:** Satschain leverages Bitcoin's proof-of-work (PoW) security model, which is more robust than the separate security protocols often used by L2 solutions.
3. **Transaction Handling:** Transactions in Satschain are validated on the Bitcoin blockchain, whereas L2 solutions manage and process transactions off-chain.
4. **User Experience:** Satschain allows for seamless interactions via Bitcoin transactions, eliminating the need for users to manage multiple wallets or understand additional blockchain layers, as required by many L2 solutions.

Economic Model: Satschain uses BTC for transaction fees and introduces the Satschain Native Token ($SACH) only for complex usecases. This differs from L2 solutions that often use different tokens for their operations
