INTRODUCTION TO BLOCKCHAIN LAYERS
What is a blockchain ecosystem made of? Layering the many components of such an ecosystem as if they were Internet protocols is one method to organize them.
The following layers can be used to categorize a blockchain ecosystem:
Layer 0: The foundational system upon which several Layer 1 blockchains can be constructed.
Layer 1: The fundamental blockchains that programmers use to create apps like decentralized applications (DApps).
Layer 2: Scaling solutions that manage Layer 1 blockchain activity to lessen the transactional strain.
Layer 3: Applications built on the blockchain, including as games, wallets, and other DApps.
Not all blockchain environments can be categorized into these groups, though. Depending on the situation, some ecosystems may be missing some levels while others can be labeled as various layers.
The problems that Layer 1 networks with monolithic architecture, like the Ethereum network, encounter are aided by layer 0 protocols. Layer 0 aims to more effectively address issues like scalability and interoperability by building a more adaptable basic infrastructure and enabling developers to construct their own goal-specific blockchains.
Layer 0 blockchains may be able to solve some of the industry's problems, including interoperability and scalability, depending on how they are created. But it's still unclear how well Layer 0 blockchain adoption will go. There are numerous rival methods working toward comparable objectives.
The capacity of Layer 0 blockchains to draw developers to create on these protocols and if the applications housed on them offer genuine value to users will determine how major a role they will play in resolving the industry's problems.