Blockchain Layer based framework
Blockchain layers help us to understand the bigger picture of different blockchains,dApps projects & other development tools.
Blockchain platforms are categorized into 3 distinct layers.
Layer 1 refers to the actual underlying blockchain, with its core architecture and functionality. Examples of layer 1 networks are the Bitcoin, Ethereum, and Solana blockchains.
Layer 2 protocols often use a combination of on-chain and off-chain operations to offer their extended functional capabilities. Examples of layer 2 projects on Bitcoin include the Lightning Network, Ethereum based Polygon, and Fantom.
Layer 3 refers to the protocols that enable DApps on the blockchain. some of the well-known fantom-based dApps are ren,multichain.xyz, along with polygon has a wide range of ecosystems of the dApps.
Blockchain Scalability?
Blockchain technology struggling with the unique challenge known as the Blockchain Trilemma; Which is the balancing factor between Scalability, Security along with Decentralization within blockchain infrastructure.
- Scalability is the ability to handle a large volume of transactions.
- Security reflects a blockchain protocol’s defenses against malicious actors and network attacks.
- Decentralization is the distribution of computing power & consensus within a network.
Layer 1
It refers to a base network, for example, Bitcoin or Ethereum,& it follows Proof of Work (PoW) block verification mechanism.
Challenges with Layer 1:-
Bitcoin suffered lots of scalability issues. Average Bitcoin transaction fees can spike during periods of congestion on the network, as they did during the 2017 Crypto boom where they reached nearly 60 USD. Bitcoin Average Transaction Fee is at a current level of 1.486, down from 1.872 yesterday and down from 21.11 one year ago. This is a change of -20.61% from yesterday and -92.96% from one year ago. (source-blockchain). This raise results in block verification being slow & energy-consuming. This leads to the layer 2 protocol.
Layer 2
This layer is totally built upon the existing blockchain(Layer 1). Layer two is a third-party integration used in conjunction with layer one to enhance the number of nodes and, as a result, system throughput. Examples of layer 2 platforms for Bitcoin include Lightning Network and Ethereum include Polygon, Fantom, etc.
Layer 3
This is represented by blockchain-based apps, projects such as Defi apps, and games. Nowadays there are many applications which are supporting cross-chain functionality, which allows users to access various blockchain platforms from a single app.
Key Takeaway:-
Layer one is the foundation for the decentralization system which suffered a lot with scalabilities issues which are addressed via Layer two. And Layer three-based applications are proving themselves to play an important role because they help to develop real-world use cases of blockchains.
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