Recap

Alright, guys, as in Part One we learned about the Basic Layers of Communication of Blockchain Networks, So I hope you would now have a basic understanding of the communication flow happening on each layer. If not no problem! you can always go back and revisit the article.

Layer-0

It’s the underlying infrastructure layer that forms the basic blockchain network consisting of distributed nodes forming the peer-to-peer architecture. Layer 0 enables interoperability (cross-chain communication), and blockchain protocols that are built on the same layer 0 can easily transfer tokens and data. Polkadot is a layer-0 blockchain that allows not just tokens but also arbitrary data to be transferred to different blockchains. It runs the Relay chain as its main chain and its sister chains called Parachains (L1). Avalanche is another layer-0 tech composed of a Primary Layer with 3 blockchains — Exchange Chain to exchange assets, a Platform Chain to create custom chains via subnet, and Contract Chain to execute the smart contracts.

Layer-1

The Fundamental Layer contains critical cryptographic protocols that ensure the security of the blockchain. This layer of cryptographic protocols is critical for the integrity of processes, the secure distribution of data, and the blockchain’s consensus mechanisms. Bitcoin’s Proof of Work (PoW) and Ethereum’s Proof of Stake (PoS) are the two most well-known layer-1 protocols. In its most recent consensus protocol upgrade, Ethereum abandoned PoW in favour of PoS (Casper). The new layer-1 PoS protocol is significantly faster and less energy-intensive. The switch to PoS makes attacking the Ethereum protocol much more difficult. To secure the network, validators must stake large amounts of ETH. If the validator tries to attack the network, the protocol will destroy all of its staked ETH.

Layer-2

Although adding nodes is essential for sustaining a blockchain’s decentralized character, fiddling with scalability, decentralization, or throughput will affect the others on layer 1. As a result, layer 1 cannot be enlarged without relocating all processing to a second layer created on top of the first which is layer 2. This is made feasible by allowing third-party solutions to be integrated with layer 1. A new network, Layer 2, revamps Layer 1 and manages all the transactional validations. Layer 2 sits on top of Layer 1 in the blockchain ecosystem and constantly exchanges information with it. Polygon is a Proof-of-Stake (POS) and EVM-compatible blockchain with its native currency MATIC. It’s defined as an L2 that acts as a ‘commit-layer’ that periodically commit checkpoints to the Ethereum network.

Layer-3

The last layer of the blockchain ecosystem and the one visible to the human eye. Layer-3 is the one where participants will eventually interact with the user interfaces (UI). When working with L1 and L2, this layer aims to give simplicity and ease. L3 not only provides UI, but also utility in the form of intra- and inter-chain operability, such as decentralized exchanges, liquidity provisioning, and staking applications. Decentralized apps (dApps) are a type of layer 3 interface that provides real-world applications for blockchain technology.

Summary

In summary, Layer 1 is the base layer of a blockchain network which allows layer 2 blockchains to build on top of it. This decongests the main chain providing higher transaction speeds and lower fees. Layer 3 blockchain hosts decentralized applications (DApps)