To see through the noises, you need to build your own perspective in assessing projects.

But how? 

Learn the types of #blockchain solutions so you can efficiently capture the essence of the projects.

Here are 5 major types of blockchain technologies:

  1. Layer 1 Main Chains

  2. Side Chains

  3. Layer 2 Scaling Solutions

  4. AppChains (or Layer 3s)

  5. Private Chains

Let's go through them one by one:

  • Layer 1 Main Chains - the Protocols

The base layer blockchains that support Layer 2 chains, side chains, and app chains. They are responsible for processing and validating transactions, and for maintaining the security of the network.

Popular L1s: $ETH #ETH $BTC  #BTC

  • Side chains:

Independent chains that are connected to a main chain by a two-way bridge. This allows users to transfer assets between the side chain and the main chain. They usually feature benefits such as faster and cheaper transactions.

Noticeable side chain: $MATIC #Polygon

  • Layer 2 - Scaling Solutions

Built on top of Layer 1, they scale the base chains and reduce transaction fees. They use a variety of techniques to achieve this, such as state channels and rollups.

Popular #Layer2 : Arbitrum, Optimistic

  • App chains:

App chains are specialized blockchains designed to run a specific application. They are often used by businesses to build their own private blockchains.

Popular AppChains: Cosmos Zones

  • Private blockchains:

Private blockchains are blockchains that are owned and controlled by a single entity or group of entities. They are often used by businesses to improve their efficiency and security.

Noticeable private chain: Hyperledger Fabric

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