Layers of the Blockchain
We have learned more about consensus mechanisms. Therefore, it’s time to dive a bit deeper inside the layers of the Blockchain protocols. Different blockchains operate on different layer levels. After this section, you will have a clearer understanding of how everything is tied together.
Blockchain layers refer to the hierarchical structure of a blockchain system, typically categorized into three main levels. Layer 0 is something unique, it will be able to tie together Blockchains (Layer 1’s) and establishes the underlying protocol and architecture of the entire blockchain system.
Layer 0:
Layer 0 in blockchain refers to the foundational layer that establishes the underlying protocol and architecture of the entire blockchain system. It includes the core infrastructure elements, such as consensus mechanisms and networking protocols.
Layer 1:
Layer 1 in blockchain represents the base protocol layer where the main blockchain network operates, handling tasks like transaction validation and block creation. Examples include Bitcoin and Ethereum, where the primary consensus mechanisms and native assets reside.
Layer 2:
Layer 2 solutions aim to enhance scalability and efficiency by building additional protocols or frameworks on top of Layer 1 blockchains. These solutions, like Lightning Network for Bitcoin, enable faster and more cost-effective transactions by processing certain operations off-chain.
Layer 3:
Layer 3 typically refers to the application layer where decentralized applications (dApps) and smart contracts run. It entails the various use cases and functionalities built on top of the Layer 1 and Layer 2 protocols. Which contributes to the broader ecosystem’s utility and diversity.
Blockchain layers explained quickly
Layer 0 is the foundational infrastructure of a blockchain network, enabling interoperability and communication between different blockchains (layer 1’s).
Layer 1 is the foundational protocol layer where the core blockchain network operates, handling tasks like transaction validation and block creation.
Layer 2 are scalability solutions built on top of Layer 1, aiming to improve efficiency through protocols like for example the Bitcoin Lightning Network.
Layer 3 is the application layer, hosting decentralized applications (Dapps) and smart contracts, contributing to the broader blockchain ecosystem’s utility and diversity.
Together, these layers form a comprehensive framework. Each level serves a distinct purposes in the endless possibilities of blockchain technology.
