In Chapter 1 Peter reminds the followers of Christ that they are called to be holy, that is different from the society around them.
Here he begins chapter 2 with practical teaching about what is not part of the life of faith.
Then he writes of uniqueness, wonder, and significance of Jesus, the living Stone,…a chosen and precious stone. Upon him the church is built and thrives. Those who believe in him become/ are built into the church. Unfortunately, there are those who reject him; they stumble in life.
However, those who believe are part of a new reality. They are the church, a special people.