Layer 0, Layer 1 & Layer 2. What’s the difference?
Blockchain technology has seen great development since the creation of Bitcoin in 2009. Among the many advancements in the blockchain sector, one of the most significant developments is the concept of “Layer 0”, “Layer 1” and “Layer 2” blockchains. These terms refer to different levels of the blockchain stack and understanding the differences between them is crucial for anyone looking to navigate the complex world of blockchain technology. In today’s article, we’ll give you a good idea of what each term means.
What Is a Blockchain?
Before we dig deeper into the subject of layers, let’s refresh what a blockchain really is. According to the official definition, a blockchain is a digital ledger/distributed database, shared among network nodes in a peer-to-peer network. Information on the blockchain is stored in a digital format in the form of blocks. Each block is linked to the one before it, thus the name Blockchain, making it borderline impossible to tamper with the data. One of blockchain technology’s biggest advantages is that it completely eliminates the need for a third party as network participants can communicate directly peer-to-peer.
Smart contracts are programs stored on the blockchain that get executed when certain criteria are met. This makes blockchains highly programmable and extends their utility to much more than just storing data.
Where It All Begins
Layer 1 and Layer 2 are two terms that get tossed around a lot and both of them have a dual meaning. When somebody mentions Layer 1 it could mean:
- A Layer 1 base blockchain such as Bitcoin, Ethereum, Solana, Cardano, and many others
- A Layer 1 scaling solution
In the first case, it’s the foundational layer upon which other layers can be built. Ethereum provides the core infrastructure and maintains the network of validators, guaranteeing the security of all participants.
A Layer 1 scaling solution represents changes made directly to the base layer, all in order to improve the scalability, decentralization, or security of the network. For example, increasing the size of the blocks can lead to more transactions being processed. Other Layer 1 scaling methods include sharding, changing the consensus mechanism, and more. The problem with Layer 1 scaling is that it can be hard to implement it and that not all network participants will necessarily all agree to it. There’s more than one case where this has led to a hard fork of the blockchain.
Ethereum is without a doubt the biggest blockchain with smart contract capability. The blockchain has the most users, but it suffers from some issues that can’t be addressed directly on the main chain. That’s where Layer 2 comes in.
Improving Layer 1 Blockchains
Much like the Layer 1 definition, Layer 2 has a dual meaning. On one hand, people use it to describe a blockchain built on the base layer (Layer 1). On the other, Layer 2 can refer to a scaling solution that takes computation off the main chain to a secondary para chain. Layer 2 blockchains can provide scalability and new functionality to an already existing Layer 1. The best example here is Ethereum.
If you’ve ever used the Ethereum network, you probably know that transactions can get pricey. The most common way to reduce gas fees (transaction prices) and increase throughput (speed) is to use Layer 2 scaling solutions. Layer 2 scaling solutions take a load off the main chain by bringing the computation to the secondary chain. This makes transactions much faster and cheaper than on the main chain and allows for the creation of decentralized apps. There are already numerous Layer 2 scaling solutions for the Ethereum network such as Arbitrum, Polygon, StarkWare, Optimism, and many others.
What Is a Layer 0 Blockchain?
Layer 1 and Layer 2 scaling solutions aim to improve the scalability of Layer 1 blockchains and add new functionality. Interoperability is something many of us foresee in the near future of blockchains but not many projects are working actively toward it. What if there was a solution that addressed these problems?
Layer 0 blockchains are trying to resolve the problem before it’s even there. Let’s imagine for a moment that Layer 2 blockchains/solutions are different companies that reside in the same building (Layer 1). If that’s the case, then Layer 0 blockchains can be referred to as the land those building(s) were built upon.
Polkadot is perhaps the most famous example of a Layer 0 blockchain. It supports an entire ecosystem of different Layer 1 blockchains that can communicate with each other, solving the problem with interoperability. Developers can build with ease, without worrying their project will be isolated on a single blockchain. The commonly found scalability issue which plagues more than one network is also easily resolved as the workload from one blockchain can easily be spread between other Layer 1s.
Conclusion
Blockchain technology has been rapidly evolving in the past decade. Advancements are being made every year and the solutions for some of the core issues plaguing the space have already been revealed. Just a few years ago, the blockchain trilemma claimed that no blockchain will be able to simultaneously achieve decentralization, scalability, and security. Thanks to Layer 0 blockchains and Layer 2 scaling solutions, might also be a thing of the past. With the technology already here, the only thing left is the mass developer and user adoption.
About Myria
Myria is a blockchain game development studio and an Ethereum Layer 2 solution, built to scale digital assets, NFTs and blockchain gaming. Myria utilizes ZK roll-up tech to supercharge its ecosystem and bring the next generation of gamers to the blockchain. Myria has a thriving community of over 300,000 users and more than 240 blockchain projects are already building on the Myria blockchain. Thanks to ZK technology, users can expect high transaction speeds, 0 gas fees, and free NFT minting.
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