BLOCKCHAIN DISTINCTION: L0, L1, L2 & L3 The ever-increasing use of crypto has led to the need to create "tiers" of blockchains. This classification allows for increased network security, transaction speed, scalability, and more.
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Layer 0 is a kind of "basic" layer necessary for interchain interoperability. This is the network structure running under the blockchain, including protocols, hardware, miners and other components that make up the blockchain ecosystem.
The main features are:
- enabling blockchains to interact with each other;
- availability of infrastructure for developers;
- fast and cheap transactions on crosschain exchanges, thanks to the IBC-protocol.
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Layer 1 is a blockchain that can conduct transactions without the participation of another network. Its main problem: as the number of users increases, blockchain performance and transaction processing speed can decrease.
Let's make an analogy: if dApps is an offline store that everyone visits, the L1 blockchain is the plot of land on which it is built, and L0 is the road networks that connect the land plots.
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Layer 2 is a protocol deployed on top of the main L1-blockchain. It helps increase system throughput, transaction speed, and scalability.
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Layer 3 is what is known as an "application" level blockchain. L3 includes various decentralized solutions and protocols that enable applications.
See the new infographic for examples of all layers of blockchain.
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