
What Are Blockchain Layers? Layer 0 Layer 1 Layer 2 Layer 3 You may hear people refer to a network as an L1 or L2. Here is a breakdown of what each layer is and what they do. π§΅
Layer 0 The ground floor for all blockchain protocols. Allow for entire blockchains to be built on them. They have the benefit of almost unlimited use cases, L0 can be used for: - Mining - Data Validation - Currency Wrapping - Building Blockchains Examples: $DAG $DOT $COSMOS
Layer 1 This is the base network and itβs underlying infrastructure. L1 can validate and finalize transactions without the need for another network. L1βs tend to struggle with scalability due to the heavy use of computational resources. Examples: $ETH $BTC $BNB $SOL
Layer 2 Networks that sit on top of Layer 1 networks. The main goal of L2βs is to solve transaction speeds and scalability difficulties that L1 networks face. L2βs can take a lot of transactional workload off the L1βs without sacrificing security. Examples: $MATIC $METIS $GNO
Layer 3 This is where the protocols and dApps live on the blockchain. This is also called the application layer. Any DeFi apps you interact with are considered L3 These apps are directly based off of whatever L0, L1 or L2 network they are built on. Examples: $UNI $YFI $SUSHI
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