Blockchain technology has evolved rapidly and has given rise to different layers that operate together to provide more scalable and efficient solutions.
In this article we explain what the different layers are, highlighting their distinctive features and examples of each one.
Layer 0, also known as the base layer, refers to the underlying infrastructure that provides the foundation for the creation of blockchains. In this layer, physical and network components such as communication protocols, cryptographic security and consensus structure are found.
Examples of technologies used at layer 0 include the Internet, TCP/IP and routers. include the Internet, TCP/IP and routers.
Layer 1 refers to the base protocol layer of a blockchain. This is where the fundamental consensus rules are established and the core data structure is defined. Layer 1 blockchains are independent and have their own consensus mechanism, security and unique features.
Bitcoin and Ethereum are prominent examples of layer 1 blockchains, with their own native cryptocurrencies and specific functionalities.
Layer 2 focuses on scalability and performance solutions to overcome the limitations of layer 1 blockchains. These solutions are built on top of an existing layer 1 blockchain and seek to improve transaction processing speed and capacity.
Examples of layer 2 solutions include Bitcoin Lightning Network, Optimism, Polygon and Arbitrum.
Layer 3 refers to applications and protocols built on top of layer 1 and layer 2 blockchains. This is where decentralized applications (dApps), financial services and other specific use cases are developed.
Notable examples of layer 3 include DeFi (decentralized finance) projects such as. Uniswap, Compound and Aave, which leverage the infrastructure of Layer 1 and Layer 2 blockchains to offer decentralized financial services.
You already know the different layers that make upblockchain technology!
