#Blockchain Explained: Understanding Layer 1, Layer 2, and Layer 3 Blockchain
Blockchain technology has evolved significantly since its inception, paving the way for innovative solutions that promise to revolutionize various industries. A crucial aspect of this evolution lies in the concept of blockchain layers, each serving a distinct purpose and addressing specific challenges.
In this article, we delve into the intricacies of Blockchain Layer 1, 2, and 3, exploring their functionalities and impact on the blockchain ecosystem.
Layer 1 Blockchain: The Foundation of Trust
Layer 1, often referred to as the base layer, constitutes the fundamental infrastructure of a blockchain network. At its core, Layer 1 encompasses essential components such as the blockchain protocol, consensus mechanism, and native cryptocurrency. These elements form the bedrock upon which the entire blockchain system operates.
Prominent examples of Layer 1 blockchains include Bitcoin, Ethereum, and Cardano. These networks process and finalize transactions directly on their native blockchain, ensuring security and immutability. However, despite their robustness, Layer 1 blockchains encounter scalability challenges, restricting their capacity to handle a large volume of transactions efficiently.
