INTRODUCTION TO LAYERS IN BLOCKCHAINS.
If you ain't new to cryptocurrency, you must have been hearing about layer 0, layer 1, layer 2 and layer 3 without knowing anything else about those LAYERS. You participate in their testnets without even understanding what those projects are all about.
BLOCKCHAIN
Blockchain is a technology that allows data to be stored and exchanged on a peer-to-peer network, without the need for a central authority or intermediary. Blockchain data is organized in blocks, which are linked together by cryptographic hashes. Each block contains a record of transactions, a timestamp, and a reference to the previous block. This makes blockchain data immutable, transparent, and verifiable.
Types Of Blockchain
1.Public blockchains: A public blockchain has absolutely no access restrictions. Anyone with an Internet connection can send transactions to it as well as become a validator (i.e., participate in the execution of a consensus protocol). This is the most common types of Blockchain in which anyone can paste his or her address on the Blockchain (binance smart chain, Ethereum, polygon, bitcoin, solana e.t.c) explorer.
2.Private blockchains: A private blockchain is permissioned. One cannot join it unless invited by the network administrators. Participant and validator access is restricted(example is ripple).
3.Hybrid blockchains: A hybrid blockchain has a combination of centralized and decentralized features.The exact workings of the chain can vary based on which portions of centralization and decentralization are used.
4.Sidechains: A sidechain is a designation for a blockchain ledger that runs in parallel to a primary blockchain.Entries from the primary blockchain (where said entries typically represent digital assets) can be linked to and from the sidechain; this allows the sidechain to otherwise operate independently of the primary blockchain (e.g., by using an alternate means of record keeping, alternate consensus algorithm, etc.)
5.Consortium blockchain: A consortium blockchain is a type of blockchain that combines elements of both public and private blockchains. In a consortium blockchain, a group of organizations come together to create and operate the blockchain, rather than a single entity.
Advantages and Disadvantages of each Blockchains
🔸The advantages of public blockchains are that they are decentralized, transparent, and trustless while The disadvantages are that they are slow, inefficient, and less private.
🔸The advantages of consortium blockchains are that they are scalable, flexible, and collaborative while The disadvantages are that they are semi-centralized, semi-transparent, and semi-trustless.
🔸The advantages of hybrid blockchains are that they are customizable, interoperable, and adaptable while The disadvantages are that they are complex, costly, and challenging.
🔸Sidechains can process transactions faster and more efficiently than the main chain, reducing congestion and fees while it does not inherit the security and decentralization of the main chain and rely on their own validators and mechanisms to prevent attacks and fraud.
LAYERS IN BLOCKCHAINS
A layer in blockchains is a component of a blockchain system that performs a specific function or provides a certain feature. Blockchains can have multiple layers that work together to ensure the security and scalability of the technology. There are only four categories of layers namely:
1.Layer 0
2.Layer 1
3.Layer 2
4.Layer 3
Layer 0
Layer 0 is the underlying physical layer of the blockchain network. It is responsible for the communication and networking of the blockchain nodes, as well as the security, consensus, and scalability of the system. Layer 0 enables the creation and maintenance of decentralized and distributed ledger systems, such as Bitcoin, Ethereum, and other Layer 1 blockchains. Layer 0 also supports the interoperability and innovation of Layer 2 and Layer 3 solutions, such as sidechains, state channels, and decentralized applications.
Layer 0 is hoping to create a more flexible and customizable blockchain infrastructure that will make it easier for developers to introduce their own blockchains that are purpose-specific. This will ultimately allow Layer 0 to tackle issues like interoperability and scalability more efficiently.
Advantages Of Layer 0
1.Scalability: One of the biggest challenges facing blockchain technology is scalability. Layer 0 solutions such as sharding, off-chain processing, and sidechains can help improve the scalability of the blockchain network by reducing the workload on the main chain. This design allows different blockchain networks to optimize their operations by using the same underlying infrastructure of layer 0. This allows for more scalable networks.
2.Security: Blockchain networks rely on cryptography to secure their transactions and prevent malicious attacks. Layer 0 protocols such as proof-of-work (PoW), proof-of-stake (PoS), and Byzantine Fault Tolerance (BFT) can help improve the security of the network by making it more difficult for attackers to manipulate the system.
3.Decentralization: Decentralization is one of the key features of blockchain technology. Layer 0 protocols such as PoW and PoS can help ensure that the network remains decentralized by preventing any single entity from controlling the network.Overall, Layer 0 solutions are critical to the success of blockchain technology as they address some of the most pressing challenges facing the industry.
4.Flexibility for developers: Traditionally, developers building on top of blockchains have been limited by the constraints of the underlying infrastructure, such as the transaction throughput, gas fees, and consensus mechanisms. This has made it difficult for developers to build applications that are scalable, efficient, and cost-effective.Layer 0 solves this problem by allowing developers to customize the underlying infrastructure to meet the specific needs of their application. This includes the ability to choose their own consensus mechanism, adjust the transaction throughput, and set their own gas prices.
By giving developers more control over the underlying infrastructure, Layer 0 enables them to build more efficient, scalable, and cost-effective applications. This, in turn, makes it easier for developers to create innovative blockchain-based solutions that can be used by a wider audience.
Disadvantages Of Layer 0
1.Complexity: Layer 0 protocols are complex and challenging to design, implement, and maintain. They require a high level of technical expertise and coordination among different stakeholders. They also introduce new risks and trade-offs that need to be carefully evaluated.
2.Cost: Layer 0 protocols are costly to operate and upgrade. They involve a large amount of hardware, bandwidth, and energy consumption. They also require incentives and governance mechanisms to align the interests and behaviors of the network participants.
3.Compatibility: Layer 0 protocols may face compatibility issues with existing layer 1 protocols and applications. They may not support all the features and functionalities of the main chains, or they may introduce new limitations and constraints. They may also require users to adopt new standards and protocols to access the layer 0 services.
Blockchains built on Layer 0
1.Avalanche (AVAX): A layer 0 protocol that enables the creation of custom blockchains and decentralized applications with high scalability, interoperability, and security. Avalanche uses a novel consensus mechanism called Snowman that can achieve sub-second finality and thousands of transactions per second.
2.Cosmos (ATOM): A layer 0 protocol that connects independent blockchains into a network of interoperable zones and hubs. Cosmos uses a modular framework called Cosmos SDK that allows developers to build custom blockchains with different features and parameters. Cosmos also employs a consensus algorithm called Tendermint that can support fast and secure transactions.
3.Polkadot (DOT): A layer 0 protocol that links multiple heterogeneous blockchains into a unified network of parachains and relay chains. Polkadot enables cross-chain communication, shared security, and scalability for various blockchain applications. Polkadot also leverages a governance system that allows stakeholders to upgrade and improve the protocol.
4.Venom: Venom is a Layer 0 blockchain that aims to tackle the obstacles to the widespread adoption of decentralized applications, such as slow block confirmations, high transaction fees, and limited scalability. It offers a decentralized network based on cutting-edge technology that provides swift, secure, and scalable solutions across multiple industries.
The Future of Layer 0 Protocols
Layer 0 protocols are seen as a viable option for addressing the scalability issues that plague blockchain networks and as an alternative to smart contracts. There are several successful Layer 0 platforms, including Avalanche, Polkadot, and Cosmos, which are home to a vast number of decentralized applications and Layer 1 protocols.
With emerging Layer 0 protocols like Venom and its groundbreaking vision, the industry is poised to further adoption of blockchain technology in regulated markets while maintaining decentralization and regulatory compliance.
By leveraging Layer 0 technology, it is possible to achieve virtually unlimited scalability while mitigating blockchain’s network congestion issues. This approach also helps to ensure that the network remains secure and fully decentralized, addressing one of the most significant challenges facing blockchain technology.
VENOM; THE BOOST LAYER 0 NEEDS.
Venom isn't on mainnet yet but you can participate in its ongoing Testnet. Follow and subscribe so you can get notifications about my next article which will be on VENOM. Thanks for reading.
