đHi, I am 10, this is a series of #ćșćéŸćć±ćČ articles. This article briefly introduces science "What are L0, L1, L2 and L3?" ă.
L0, L1, L2 and L3 are different levels of blockchain protocols proposed by practitioners in order to solve the performance bottlenecks, scalability issues, interoperability obstacles and other issues of the blockchain, representing different functions and characteristics.
Assuming that blockchain technology is a pyramid, then #L0 is the base of the pyramid, #L1 is the main body of the pyramid, #L2 is the top of the pyramid, and #L3 is Decoration on the pyramid. Each layer relies on the services and functionality provided by the next layer, but also has its own advantages and limitations.
đčL0: Data transmission layer
L0 is the lowest-level protocol, just like the foundation of the pyramid, it supports the entire blockchain system. It is responsible for delivering data in the blockchain network, just like a courier, delivering data from one place to another. It uses encryption technology and distributed storage methods to ensure that data is not tampered with during transmission, just like adding locks and seals to data to prevent data from being stolen or altered. It can also enable interoperability and cross-chain transactions between blockchains, just like a translator, allowing blockchains in different languages ââto understand and communicate with each other.
Projects and applications:
- IPFS: a distributed file system that can store data on multiple nodes to improve data security and reliability.
- Filecoin: A decentralized storage network based on IPFS that can provide users with storage services.
- ERC-20: A token standard (Token) based on Ethereum that can be used to create and issue cryptocurrency.
- ERC-721/1155: A non-fungible token standard (NFT) based on Ethereum that can be used to create and issue digital assets with uniqueness and scarcity.
- TLS: encryption protocol that protects the security of data during transmission.
- HTTPS: HTTP protocol encrypted using TLS protocol to ensure the security of data during transmission.
đčL1: On-chain expansion solution
L1 is the first layer of protocol, just like the main body of the pyramid, it forms the core of the blockchain system. It refers to improving the networkâs throughput and transaction processing capabilities by improving the blockchain protocol itself. Just like an engineer, it can change the design and parameters of the blockchain system to make it faster, more secure and less expensive. Bitcoin and Ethereum are both layer 1 blockchains.
Projects and applications:
- Bitcoin: A blockchain network based on the Proof of Work (PoW) consensus mechanism, with slower transaction processing speed but higher security.
- Ethereum: A blockchain network based on the Proof of Work (PoW)/Proof of Stake (PoS) consensus mechanism, with slower transaction processing speed but better scalability.
- BSC: Based on a system of 50 validators, using Proof of Stake (PoSA) consensus, which can support short block times and low transaction fees.
- Avalanche: A blockchain network based on the avalanche consensus mechanism, with faster transaction processing speed and better scalability.
đčL2: Off-chain expansion solution
L2 is the second layer protocol, just like the top of the pyramid, it adds more functions and features based on the first layer protocol. It refers to improving transaction processing speed through state channels, side chains and other solutions without changing the underlying protocols and basic rules of the blockchain. Like a magician, it can transfer some transactions from the main chain to sub-chains, thus reducing the burden on the main chain. This makes transactions faster, cheaper and more flexible.
Projects and applications:
- Status channel: an independent transaction channel that can move transaction processing out of the blockchain network and increase transaction processing speed.
- Side chain: A parallel chain connected to the main chain, which can separate transaction processing from the main chain and improve the performance of the main chain.
- Lightning Network: A capacity expansion solution based on state channels that can achieve instant payments.
- Optimistic Rollup: An expansion plan based on optimistic oracles that can increase transaction processing speed.
- ZkRollup: A scaling solution based on zero-knowledge proof that can improve transaction processing speed and privacy protection
đčL3: Application layer
L3 is the third layer of protocol, just like the decoration on the pyramid, it provides users with a rich, diverse and interesting blockchain experience. It includes various blockchain-based applications such as decentralized finance (DeFi), non-fungible tokens (NFT), social media, etc. Just like an artist, it can use blockchain technology to create a variety of beautiful, interesting and valuable works.
Projects and applications:
- Decentralized Applications (DApps): Applications that run on the blockchain network and have the characteristics of decentralization, transparency, and security.
- Decentralized Finance (DeFi): Financial applications running on blockchain networks, including lending, trading, insurance, etc.
- Non-fungible tokens (NFT): Digital assets with uniqueness and scarcity that can be used to represent artworks, collectibles, game props, etc.
- Privacy protection: Blockchain networks have a certain degree of transparency, so privacy protection is an important issue. At present, privacy protection in blockchain networks is mainly solved through technical means and laws and regulations.
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