| Layer | Description | |
|---|---|---|
| Layer 0 | Layer 0 protocols serve as the underlying infrastructure that supports and interconnects various Layer 1 blockchains. These frameworks provide essential services like consensus algorithms, network connectivity, and security enhancements across multiple blockchains. Layer 0 solutions enable scalability and interoperability, allowing different networks to communicate seamlessly. Notable chains using Layer 0 include Polkadot and Cosmos. |
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| Layer 1 | Layer 1 blockchains, also known as the base layer, are the foundational level of blockchain technology where transactions are processed and recorded. This layer is crucial for ensuring security and decentralization through consensus mechanisms like Proof of Work or Proof of Stake. Layer 1 solutions focus on improving scalability, speed, and efficiency directly on the blockchain itself, often through protocol upgrades or enhancements. Enhancements to Layer 1, such as sharding or new consensus mechanisms, aim to improve scalability and efficiency without relying on external systems. Notable chains using Layer 1 include Bitcoin and Ethereum. |
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| Layer 2 | Layer 2 solutions are built on top of Layer 1 blockchains to enhance scalability and transaction speed by handling transactions off the main chain. Techniques like state channels, sidechains, and rollups (Optimistic Rollups and zkRollups) are employed to reduce the load on Layer 1, facilitating faster and cheaper transactions. Notable chains using Layer 2 include Lightning Network for Bitcoin and Arbitrum for Ethereum. |
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| Layer 3 | Layer 3 protocols are application-specific layers that build on Layer 2, focusing on user interface and experience improvements. They facilitate easy access to blockchain applications through customizable tools and services, enhancing usability without modifying underlying network layers. Layer 3 solutions are pivotal for driving mainstream adoption of blockchain technology. Notable chains using Layer 3 are often specific DApps or service platforms built on top of existing Layer 2 solutions. |
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| Side chain | Sidechains are independent blockchains that run parallel to a main blockchain, allowing for the transfer of assets between the two via a two-way peg. These chains operate under their own consensus models and can have different block parameters like block size or speed, tailored to specific use cases. Sidechains enhance scalability and flexibility by offloading transactions from the main chain, enabling customized features or governance models without overburdening the primary network. |