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. 🧵

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 it’s underlying infrastructure. L1 can validate and finalize transactions without the need for another network. L1’s 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 L2’s is to solve transaction speeds and scalability difficulties that L1 networks face. L2’s can take a lot of transactional workload off the L1’s 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