Difference between layers 0, 1, 2 and 3 in blockchain

The different layers in the blockchain architecture represent levels of functionality and interaction:

Layer 0: Connected Blockchain Infrastructure

Layer 0 forms the foundation that allows different blockchains to communicate. It includes protocols that promote interaction between independent networks. It contributes to interoperability, making it possible for different blockchains to work together. An example of this is Polkadot and Cosmos.

Layer 1: Core Blockchain

Layer 1 refers to the blockchain itself, such as Bitcoin and Ethereum, which manages security, consensus, and transaction verification. This layer faces challenges such as scalability and transaction speed.

Layer 2: Expansion Solutions

Layer 2 includes protocols built on top of Layer 1 to improve performance. These solutions address limitations in core networks, such as Bitcoin’s Lightning Network and Ethereum’s Optimistic Rollups, where some activity is moved off the main chain.

Layer 3: Decentralized Applications (dApps)

Layer 3 includes applications that users interact with directly, such as games, decentralized financial services (DeFi), and non-fungible token (NFT) marketplaces. These applications rely on the lower layers to ensure security and reliability.

Conclusion

Each layer in a blockchain system enhances efficiency, security, and interactivity. Layer 0 enables interconnection between blockchains, while Layer 1 is the main blockchain. Layer 2 improves scalability, while Layer 3 includes the applications that users use.

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