Discussions about Layer 1, Layer 2, and Layer 3 parachains as well as sidechains have sparked by the emergence of different blockchain scaling solutions. Understanding these concepts is crucial for developers, investors, and users navigating the complex landscape of blockchain technologies – but it’s not always very clear which is which and why we need so many different types.
The layer 1 blockchains are the ones that look like Bitcoin, Ethereum, BNB Chain” SolanaThese protocols form the basis of a network based on blockchain technology. The base layer protocols are responsible for the execution of the blockchain, the data availability and the consensus. Validating and completing transactions is done without the need to depend on another network. The Layer 1 chain has its own Native tokens are used for transaction fees. The scaling of Layer 1 networks, however, is not easy. This often involves changes in the core protocol. For example, increasing block sizes, adopting a new consensus mechanism, or using sharding.
Layer 2 blockchains are a secondary system built on existing networks that address the scaling limitations of Layer 1. Layer 2 protocols move a part of the transactional requirements from the main blockchain to an adjacent architecture. They process transactions off-chain, and record only the final states on the Layer 1 Blockchain. Layer 2 solutions for scaling include Bitcoin Lightning Networks, Ethereum Plasma Chains, Optimistic Rollups and ZK-Rollups. State channels, sidechains and state channel are also examples. The protocols inherit (mostly), the layer 1 security while improving speed, cost, and scalability.
It is not static. As an example, Ethereum has moved from Plasma to Scaling solutions. stating,
“While Plasma was once considered a useful scaling solution for Ethereum, it has since been dropped in favor of layer 2 (L2) scaling protocols. L2 scaling solutions remedy several of Plasma’s problems.”
Ethereum’s roadmap now includes a new L2 option, namely sharding. “rollups and Danksharding.” Post-modernism has not stopped the evolution of post-modernism.Dencun upgrade toward scaling via a Layer 2 on top of a Layer 2 – known more commonly as a Layer 3 chain.
Layer 3 Blockchains are specific chains for applications that sit on Layer 2 networks. This allows further customization, interoperability and scalability. Consider, for example. Arbitrum Orbit Layer 3 Chains, or Layer 3, is a feature that allows developers to build Layer 3 chains. “Orbit chains,” Arbitrum One’s and Arbitrum Nova’s layer 2 chains. Arbitrum Orbit can configure these Orbit chains with custom gas tokens and privacy and governance. Projects like XAI and Cometh are already using Arbitrum Orbit.
Similarly, Optimism’s OP Stack The power of a “Superchain” Layer 3 chains that have similar security and communications layers. Coinbase Base is a notable Layer 3 chain in the OP Stack. The OP Stack aims at making Layer 3 chains compatible. Others Layer 3 solutions are zkSync Hyperchains, and Polygon Supernets. Layer 3s have many benefits including hyper-scalability via recursive proofing and compression, customizing gas tokens, throughput and privacy, governance, as well as low cost and high performance.
Parachains are another option outside of the EVM eco-system. Parachains are a key component of the Polkadot and Kusama networks and are also application-specific, independent blockchains that run in parallel within these ecosystems. The main blockchain connects to Parachains Relay ChainRenting security equipment while maintaining your existing own Tokens, governance and functionality. These chains are able to process data and transactions with one another using cross-chain protocols such as XCMP. Nodes that act as collator nodes are responsible for maintaining the complete state of parachains and providing proofs to Relay Chain Validators.
Another type of scaling solutions is sidechains. These are parallel blockchains with tokens or other digital assets flowing between them through a peg. They have their advantages. own They are more flexible than main chains due to their block parameters and consensus mechanisms. These sidechains can be considered as a Layer 2, since they relieve the main blockchain of some of its transactional workload. Liquid and Polygon PoS are two examples of sidechains. Polygon PoS, on the other hand, has its own chain. own Instead of using Layer 1, the security should be based on a validator and a set of validation tools.
The roles of Layer 1, Layer 2, layer 3, parachains and sidechains and their differences can be complicated. All of these technologies play a vital role in helping to address the challenges associated with scalability. interoperability. and customization. Developers can use these solutions to build more interoperable and efficient decentralized applications. This will ultimately drive adoption of digital assets.
There are plenty more use cases, benefits, and reasons why so many different types of scaling solutions exist – each has its own Pros and Cons This overview should help you understand the basics and allow you to choose the chain that appeals most to you.
Disclaimer: CryptoSlate was awarded a grant by the Polkadot Foundation in order to create content related to the Polkadot Ecosystem. The Foundation provides support for our reporting, but we retain editorial control and full independence.
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Source: cryptoslate.com