In the world of cryptocurrencies, we often hear about Layers 0, 1, and 2. But what exactly does this mean? Let's simplify:
Layer 0:It is the foundation that connects different blockchains. Think of it as the infrastructure that allows multiple networks to communicate. Example: Polkadot.
Layer 1: These are the main blockchains where transactions are recorded directly. Examples include Bitcoin and Ethereum.
Layer 2: These are solutions built on top of the main blockchains to improve scalability and speed. Example: Polygon, which operates on Ethereum.
Understanding these layers is essential for navigating the crypto ecosystem and identifying investment opportunities.
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