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With the rapid development of cryptocurrency and blockchain technology, Ethereum, as one of the most widely used smart contract platforms, is experiencing a series of challenges and opportunities. In this process, "Layer 2" technology is frequently mentioned, and it is regarded as a key technology to solve the scalability problem of Ethereum. So, what is Layer 2? Why is it so important? At the same time, we often hear the terms Layer 0, Layer 1, and Layer 3. What do they mean and what is the difference?
In fact, these four work together: Layer 0 provides infrastructure; Layer 1 is the core layer, responsible for basic transaction processing; Layer 2 solves scalability issues and improves efficiency; Layer 3 and above provide more professional services to meet specific needs.
The relationship between these four and their respective uses can be seen from the figure below.
Let's start by introducing them one by one:
1. Layer 0 (L0) – Infrastructure layer
Layer 0 usually refers to the underlying infrastructure that supports the operation of blockchain technology. This includes technologies such as cross-chain protocols, which allow different blockchain systems to interact and exchange data. Layer 0 focuses on optimizing the infrastructure of the entire network, such as improving the speed and efficiency of network connections, and providing a solid foundation for upper-layer technologies.
In other words, Layer 0 is like the "foundation" of the blockchain world. It includes all the basic facilities that allow blockchain to function properly, such as the technology that allows different blockchains to communicate (cross-chain protocol). The main goal of Layer 0 is to make the entire network more powerful, such as improving the speed and efficiency of the network and providing a solid foundation for the technology.
2. Layer 1 (L1) – Main Chain Layer
Layer 1 refers to the existing blockchain network itself, namely the Ethereum mainnet. It is the core layer of the blockchain and is responsible for performing functions such as transaction verification, maintaining the integrity of the distributed ledger, and executing smart contracts. The task of Layer 1 is to ensure the security, stability, and decentralization of the entire network. Ethereum's Layer 1 improvements usually include the upgrade of the consensus mechanism (such as switching from PoW to PoS) and the application of sharding technology to improve the network's transaction processing capabilities and efficiency.
Simply put, Layer 1 is like the main road in a city, where all vehicles (transactions) must travel. This road needs to be very strong to ensure smooth traffic. Similarly, Layer 1 needs to ensure that all transactions can be completed safely and efficiently.
3. Layer 2 (L2) – Extension layer
Layer 2 technology is a series of solutions built on top of the existing blockchain network, with the main goal of solving performance bottlenecks on the main chain, such as slow transaction speeds and high transaction costs. Layer 2 reduces the burden on the main chain by transferring certain types of transactions and computing activities to the outside of the chain for processing, and then submitting the final results back to the main chain. Common Layer 2 technologies include State Channels, Sidechains, Plasma, and Rollups (such as Optimistic Rollups and ZK Rollups).
In other words, Layer 2 technology is like a "viaduct" built on the main street (Layer 1). Its main purpose is to solve traffic congestion problems on the main street, such as slow traffic and high tolls. Layer 2 technology guides some vehicles (transactions) to the viaduct, and then feeds the results back to the main street after processing, thereby reducing the burden on the main street.
4. Layer 3 (L3) and above – Application layer
Layer 3 and above can be seen as a further layer built on the basis of Layer 2, mainly used to provide more specialized or customized services. These layers may focus on providing enhanced privacy protection functions, solutions for specific fields, etc., so that developers can choose the most appropriate technology stack to build applications according to specific needs.
Imagine that Layer 3 is like some dedicated channels built on top of the "viaduct" (Layer 2). These dedicated channels can provide dedicated tunnels for transactions that require high privacy protection to ensure that transaction information is not leaked; they can also provide dedicated platforms for some specific fields, such as financial services, healthcare and other industries, enabling them to process specific types of transactions or data more efficiently.
After reading this, I believe everyone can more or less understand the specific uses of Layer 0/1/2/3. These four complement each other and none of them can be missing.
Scalability has always been a hot topic in the blockchain industry. Especially now, as Ethereum is actively merging and expanding, Layer 2 has become one of the hottest topics.
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So why is layer2 so important now?
In fact, the current Ethereum mainnet layer1 has limited transaction processing capabilities, especially during periods of high demand. Especially now after the interest rate cut, the market is generally rising and transaction volumes are increasing. If only layer1 is running, transaction confirmation time will be extended and gas fees will increase. These problems limit the application scope and development potential of Ethereum. At this time, the role of layer2 can be reflected.
Layer2 technology solves the scalability problem of layer1 by moving transaction processing off-chain, speeding up transactions and reducing costs. Layer 2 technology also improves the user experience, allowing users to enjoy fast and cheap transactions without sacrificing security. This is crucial for attracting new users, as high gas fees and long confirmation times hinder new users from joining. Not only that, before Eth2.0 is fully implemented, Layer 2 technology also provides an efficient transition solution, allowing Ethereum to continue to evolve on the existing basis.
Without Layer 2 technology, it is like a city without an overpass. The way to relieve traffic congestion during peak hours becomes more limited. In other words, without Layer 2, Ethereum will find it difficult to cope with the current surge in transaction volume in the market. Users will have to face high gas fees and long confirmation times, which will directly affect the user experience and may cause many potential users to give up using Ethereum. However, with Layer 2 technology, Ethereum can maintain high performance and low costs even during active market periods, thereby continuing to attract new users and developers.
Therefore, Layer 2 technology is crucial to the current development of Ethereum. It not only solves the current performance bottleneck, but also lays the foundation for future technological progress and application innovation.
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