Blockchain technology is typically divided into four main layers, each with a specific role:
Layer 0 (L0) - The foundational infrastructure
This represents the physical and network infrastructure upon which blockchains are built, including protocols that enable communication between different blockchains (like Polkadot and Cosmos).
Layer 1 (L1) - The core blockchain (main layer)
This is the native network of the blockchain such as Bitcoin, Ethereum, and Solana. It contains the consensus mechanisms (PoW, PoS) and records all transactions permanently. L1 layers are self-sufficient but face scalability challenges.
Layer 2 (L2) - Scaling solutions
Built on top of L1 to enhance speed and reduce costs. It processes transactions and then records the summary on the main layer. Examples include the Lightning Network (Bitcoin), Polygon, and Arbitrum (Ethereum).
Layer 3 (L3) - Applications
This includes decentralized applications (dApps), games, and financial protocols (DeFi) that the end user interacts with, relying on the lower layers to secure their data.
In short: L0 is the wiring and connections, L1 is the concrete foundation, L2 are the fast additional routes, and L3 are the houses and buildings you live in.
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