Differences Between Blockchain Levels
In the crypto industry, various blockchain solutions are categorized by levels, each serving a distinct purpose.
The Blockchain Trilemma
The trilemma is a theorem addressing the fundamental challenge of scaling networks. It states that a network has three primary characteristics: decentralization, security, and performance.
A blockchain can achieve only two of these three characteristics, necessitating a compromise on one. Developers use different levels to overcome this "compromise" and integrate all three characteristics within a single product. These levels are referred to as Layer 0, 1, 2, and 3.
Layer 1
Layer 1 includes independent blockchains like Bitcoin, Ethereum, and TON, which can process transactions on their own but encounter the trilemma.
Layer 0
Layer 0 is intended for interoperability between blockchains, facilitating asset transfers and simplifying application development across various blockchains. Examples include Polkadot and Cosmos.
Layer 2
Layer 2 introduces third-party solutions to Layer 1, targeting specific trilemma issues, usually scalability. Technologies include state channels, nested blockchains, rollups, and sidechains, such as Arbitrum and Optimism for Ethereum.
Layer 3
Layer 3, or the application layer, encompasses decentralized applications and protocols. Notable examples are Uniswap and Orbs.
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The Layer3 Foundation has revealed plans to introduce its new governance and utility token, L3, in early summer. L3 will serve as the foundation of the Layer3 ecosystem, facilitating over 96 million interactions across 545 ecosystems globally.

The Genesis Airdrop, the first major event, will distribute 5% of the tokens to reward early supporters and enhance their engagement and loyalty.

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