The blockchain network is classified into several parts by dividing it into multiple layers. Layer 0 creates a basis for the blockchain network, helping to create Layer 1. Layer 1 further helps in the development of decentralized applications. In addition, the issues related to scaling and transaction loads are handled through Layer 2. The layer containing all the games, DApps and wallets is Layer 3.
However, all blockchain networks do not necessarily contain all these layers. Layer 0 tries to tackle multiple issues caused by several other layers, such as scalability and interoperability. In this guide article, we will learn the importance of Layer 0 in the blockchain network and how it operates.
What Kind of Issues Can be Solved by Layer 0 in Blockchain?
Layer 0 addresses many problems of the blockchain network. A few of these are discussed below.
In some rigid blockchain networks, such as Ethereum, all the functions are performed by Layer 1. It ensures data availability, consensus on different issues and proper execution of transactions. However, as a result, the system becomes congested, creating a bottleneck. Layer 0 resolves this issue by distributing different functions to multiple blockchain networks.
The blockchain networks created using Layer 0 as a basis ensure the tasks on the network are optimized. In addition, it provides scalability to the system allowing the blockchain to handle the maximum number of transactions each second.
The ability of different blockchain networks to interact with each other is known as interoperability. It gives the traders a better user experience, allowing several blockchain networks to interconnect. Moreover, it provides better products and services to the users by making communication easier.
All the blockchain networks that are created on Layer 0 can interact with each other without using any bridges. Multiple blockchains in an ecosystem can be created on each other using Layer 0. They use different applications and characteristics of each other through the iterations of transfer protocols. It helps in providing greater efficiency and transaction speed to the blockchain networks.
Layer 0 uses convenient software development kits (SDKs) to help the developers create different projects. Moreover, users can also launch their blockchain networks associated with specific functionalities through the user-friendly protocol of the network.
Therefore, developers are provided great flexibility to create blockchain networks per their requirements. In addition, users can also control the kind of decentralized applications they want to build and determine the issuance model for their tokens.
Working of Layer 0 Protocol
Several ways can be used to operate Layer 0 network. However, all are different in their characteristics, focuses and designs. However, the data on the different layers of the blockchain network is backed up using Layer 0. It is used to build clusters of Layer 1 chains that help transfer data and tokens across several blockchain networks. The cross-chain transfer feature helps in this mechanism.
A few examples of systems built on Layer 0 protocol are discussed below.
Developers used Polkadot to build their customized blockchain networks. The main chain in the network is known as the Relay Chain, and all the independent chains created through it are known as parallel chains. The main chain acts as a bridge between the para chains and allows them to interact with each other.
The infrastructure of Avalanche is created on three chains. These are the C chain, the X chain and the P chain. These three chains function together to decrease latency in the system and provide higher throughput.
Cosmos Hub is created on a blockchain network built on proof of stake protocol. It provides an extra security layer to the system, helping to transfer data and information among the blockchain networks safely.
Layer 0 holds the potential to solve multiple issues of the blockchain network. However, the role of Layer 0 in creating different projects will determine its exact success rate in the future.
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