Blockchain consists of a couple of layers that performs individual functions of the blockchain technology.
Layer 0: It is the network framework and the first layer running beneath the blockchain. It is made up of connections, protocols, hardware,miners and all things that form the foundation of the blockchain ecosystem. This protocol seamlessly connects with the other protocols for building the interconnected value chains and offers a more robust as well as evolved alternative to the smart contracts.
Layer 1: It is a set of solutions improving the base protocol itself for making the overall system a lot more scalable. Two most common layer 1 solutions include: the consensus protocol changes and the sharding.
Layer 2: It is the name given to a scaling solution that permits the high throughput of the transactions whilst completely inheriting the security of the underlying blockchain that it is built on.
Layer 3: It is represented by the blockchain-based applications like the Decentralized Finance Apps (dApps), distributed storage apps or games. Many of these applications also possess cross-chain functionality that helps the users to access various blockchain platforms via a single app.« Back to Glossary Index