Difference Between Layer 1 and Layer 2 Blockchain

If you are familiar with blockchain technology or even a novice who wants to get more involved in this arena with the help of a blockchain developer in Sydney, you must have come across “layer-1” and “layer-2”. In this post, we will learn about the differences between the two terms. It is essential to know about scalability to understand the difference. Let’s first study blockchain scalability and its function to make it simpler for you to comprehend what layer-1 and layer-2 are.

What do we mean by blockchain scalability?

Blockchain scalability refers to the platform’s ability to support the growth in the volume of transactions and the number of network nodes. It is a key to blockchain standards and plays a vital role in its future development.

One needs to undergo different steps to complete a blockchain transaction on a blockchain network. This takes up a lot of time and processing power. Imagine if a blockchain network is jammed with numerous transactions stacked up. In this case, a blockchain application won’t fulfil the transaction requirements for all users. Thereby, there will be inequality in user experience. This is why scalability is crucial for the future of blockchain networks.

Differences between Layer 1 and Layer 2 blockchain

Definition: Layer 1 solutions involve modifying the blockchain networks’ base protocol for better scalability. On the contrary, layer 2 solutions concentrate on adding third-party integrations into the blockchain network’s mainnet.

Working method: The blockchain Layer 1 vs Layer 2 comparison is complete by considering the working method or approach. In the case of Layer 1 blockchain, the scaling method used by a blockchain developer in Sydney involves focusing on making changes to the basic protocol itself. Layer 1 scaling solutions require fundamental changes to blockchain protocols. Therefore, even if the transaction load drastically decreases, you need more time to reduce the alterations.

The core blockchain protocol’s primary need is for the off-chain protocols, networks, or solutions to only disclose the results. Sharing the transaction load of the primary blockchain network is how layer 2 scaling solutions for blockchains operate. Conversely, layer 2 scaling solutions are off-chain solutions that work separately from the core blockchain protocol.

Type of Solutions: The following criteria are the solutions under Layers 1 and 2. In Layer 1 blockchain, there are two types of solutions- sharding and consensus protocol improvement. Layer 1 scaling also involves adjusting block size or generation speed to ensure desirable functions.

Blockchain networks can use any protocol, network, or application as off-chain layer 2 solutions. There are no limits in the case of blockchain Layer 2 scaling solutions. However, you must connect with blockchain developers in Australia to know about the well-known layer 2 scaling solutions available.

Final Words

Scaling is necessary for the long-term viability of blockchain networks. The differences between layer 1 and layer 2 blockchains demonstrate that both of them emphasised increasing scalability. Connect with blockchain developers in Australia to understand more about blockchain scalability and its implications.

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Michael Galluzo

I am a developer and author currently extending assistance to businesses who wish to accentuate their product and scalability with competent business models.