Layer 0 protocols are essentially the infrastructure upon which Layer 1 blockchains can be built. As a foundational layer to blockchain networks and applications, Layer 0 protocols are among many solutions aiming to fix the challenges the industry faces, such as scalability and interoperability. A blockchain ecosystem can be classified according to the following layers:
Layer 0: The underlying infrastructure upon which multiple Layer 1 blockchains can be built.
Layer 1: Base blockchains used by developers to build applications, such as decentralized applications (DApps).
Layer 2: Scaling solutions that handle activities off Layer 1 blockchains to ease their transactional loads.
Layer 3: Blockchain-based application layer, including games, wallets, and other DApps.
What Problems Can Layer 0 Solve?
> Interoperability Interoperability refers to the ability of blockchain networks to communicate with one another. This property enables a more tightly interwoven network of blockchain-enabled products and services, which in turn offers a better user experience.
> Scalability A monolithic blockchain such as Ethereum is often congested because a single Layer 1 protocol is providing all the critical functions, such as transaction execution, consensus, and data availability. This creates a bottleneck for scaling that Layer 0 can alleviate by delegating these critical functions to different blockchains.
> Developer flexibility To encourage developers to build on them, Layer 0 protocols often provide easy-to-use software development kits (SDKs) and a seamless interface to ensure developers can easily launch their own purpose-specific blockchains.