A layer is a software abstraction that separates different functionalities in a layered software architecture. In the context of blockchains, a layer can refer to an additional layer of functionality added to the base blockchain.
For example, a layer can provide other functionalities such as smart contracts, decentralized tokens or decentralized governance mechanisms. Layers make it possible to add new functionalities to a blockchain without disturbing its basic functioning
There are several types of layers in the context of blockchains, including:
Layer 1: A layer 1 is the basic layer of the blockchain, which includes transaction management and node consensus.
Eg: Bitcoin, Etherum
Layer 2: A Layer 2 is an additional layer that builds on Layer 1 and provides additional functionality such as scalability, transaction commit speed, and privacy.
Ex: Bitcoin LN, Arbitrum, Matic
Layer 3: A Layer 3 is an additional layer that builds on Layer 2 and provides additional functionality such as smart contracts, decentralized tokens, and decentralized governance mechanisms.
Ex: Chainlink, Filecoin
Layer 4: a layer 4 is an additional layer which can offer functionalities such as the user interface, decentralized applications, data management.
Ex: Uniswap,IDEX
Layers allow developers to build more feature-rich blockchain applications more suited to their needs without disrupting the basic functioning of the blockchain.
