Blockchain Layers got you confused? Well, then read on friends! I, on behalf of msg.value, got you covered 😌

Let’s begin with what everyone is most familiar with. The blockchain itself! Its called Layer 1. Every blockchain is capable of functioning independently with its own logical layers of data management, network layer, activating layer or incentive mechanisms, consensus layer or node unifying mechanisms, contract or program layer and application layer or user applications.

Then why and how layer 0 , layer 2 appear?

Well, different blockchains differ in their incentive mechanisms, consensus mechanisms and transactions per second or scale. Due to this blockchains may or may not be compatible with each other and we need solutions to communicate data and transactions from one blockchain to the other.

So clearly, to support more product use cases on blockchain we need higher number of transactions per second (scalability) and common communication mechanisms (cross-chain solutions).

Introducing Layer 2, which is usually solutions to increase the scale of the layer 1 while preserving security. This is done by performing computations off chain and later submitting the results on chain of layer 1. Layer 2 solutions can be either of Rollups, State Channels, Side Chains, Plasma, Validium. Popular Layer2 solutions include Polygon, Arbitrum, Optimism.

We will explore layer 2 solutions in depth in our upcoming posts! So do follow us!

But cross-chain communication still remains unsolved. Introducing Layer 0, which is more like a relay chain containing common data infrastructure for creating multiple blockchains(layer 1) on top of it, so that they can communicate with each other while running independently. Thus Layer 0 solves cross chain communication.

Layer 0 also supports consensus mechanisms and more solutions to optimise the network functions. These increase number of transactions per second, thereby acting as a scaling solution for all layer 1 blockchains built on top of them.

Cosmos and Polkadot are 2 popular layer 0 solutions.

Need help buidling or porting your product on a layer2 ? Do reach out to us ! We help web3 companies with their product architecture, strategy and growth