Blockchain is a piece of technology that is revolutionizing different walks of life today be it finance, logistics, medicine or governance. You can find the influence of blockchain and decentralisation or at least hear about blockchain as long as you follow tech-related updates.
Blockchain networks today be they private or public can be classified into one of these four layers. In fact, most blockchain networks themselves describe and classify them under one of these three categories — Layer 1, Layer 2 or Layer 0. What’s the difference between these three layers? How ayerdoes one classify which blockchain network falls under which layer?
Layer 1 — Blockchain networks under this layer can be classified as completely functional blockchain ecosystems or self-sufficient ecosystems. In fact, these blockchains form the basic paradigm based on which the whole decentralized ecosystem has been designed from the ground up. Some of the popular examples of layer 1 blockchain networks are — Bitcoin, Ethereum, Solana and Aptos.
Layer 2 — Blockchain networks under this category are built on top of Layer 1 blockchain networks and are mostly aimed at enhancing one particular feature that they feel is lacking in that Layer 1 blockchain — it can be anything — scalability, security, flexibility etc. Without changing the core concept of Layer 1 blockchain, Layer 2 chains aim to enhance one or more features in the blockchain network and most Layer 2’s active in the market today aim to boost the scalability factor of Layer 1 blockchain networks. The most popular examples are EVM chains such as Polygon, Arbitrum and Optimism.
Layer 0 — Layer 0 came into place after Layer 2 chains but functions at a core lower level compared to Layer 1 chains. Despite Layer 2 chains aiming to address scalability and other factors the developers felt were lacking in Layer 1 chains, the market still remained fragmented preventing both users and developers from fully unleashing the power and potential of decentralised blockchain ecosystems.
Layer 0 comes into play here as it was created with the aim to promote better interoperability and cross-chain communication between different blockchain networks. They form the core fundamental building blocks of a blockchain ecosystem and act at the lowest levels focusing on network, hardware and infrastructure aspects.
Many Layer 1 blockchains can be built on top of a single Layer 0 package/toolkit. Existing Layer 1 blockchain networks can also be modified to support a widely used Layer 0 package/toolkit which would help greatly improve interoperability allowing users and developers to make use of the full potential of blockchain ecosystems they are involved in.
Dapps built on top of blockchains with access to Layer 2 solutions have better scalability in terms of gaining a maximum advantage of the blockchain network they are built on. Meanwhile, dApps built on blockchain networks with access to Layer 0 toolkit package provide better cross-chain communication helping users and developers realise the true potential of their assets and product offerings.
Here at Kana Labs, we have built a web3 middleware that connects different Layer 1 blockchain such as Solana and Aptos and Layer 2 EVM chains such as Polygon and Neon under one platform. We also use Layer 0 communication solutions to facilitate cross-chain communication between all chains supported by our platform allowing users to perform various transactions such as swap, stake and yield farming across all above-mentioned chains under a single window. Furthermore, developers can make use of our web3 middleware to directly deploy their new and existing dApps across multiple blockchains instantly with just slight modifications to their front-end code. This would allow the apps and users to unlock the true potential of the decentralised ecosystem as they have access to better liquidity, and super-fast transactions and communicate across different blockchains under a common roof.
