We have come a long way since Satoshi Nakamoto mined the first genesis block and blockchain was only about monetary transactions then. Now, blockchain has wider applications and more adoption.

It’s been possible because of continuous development over blockchain structure, where each layer solves a problem that makes the blockchain ecosystem robust & scalable.

Minions explain blockchain layers

It’s the underlying infrastructure layer that forms the basic blockchain network consisting of distributed nodes forming the peer-to-peer architecture. Layer 0 enables interoperability (cross-chain communication), blockchain protocols that are built on the same layer 0 can easily transfer tokens and data.

Prominent blockchains like Bitcoin. Ethereum, Solana, Near, etc are the layer 1 chains. These are the execution protocols that provide the environment for transactions, handle cryptographic algorithms, data, consensus and tokenomics. Native tokens of the chain are the medium to interact with smart contracts, access resources, and mint NFT.

Built on top of layer 1 chains, L2 solves the scalability problem of the blockchain trilemma by improvising on transaction speed (faster finality) & throughputs (higher transactions per second).

Layer 1 handles security, data & consensus while Layer 2 handles transactions. It takes away the transaction burden from layer 1 while taking the advantages of layer 1’s security and decentralization.

This is the utility layer where all the decentralized applications are built like DeFi, games & wallets. It gives abstraction where the user is only concerned about the application functionality and not the core protocols. It opens door for adoption & interoperability. For example, Trust Wallet & Metamask can be connected to multiple chains.

We have come a long way since Satoshi Nakamoto mined the first genesis block and blockchain was only about monetary transactions then. Now, blockchain has wider applications and more adoption.

It’s been possible because of continuous development over blockchain structure, where each layer solves a problem that makes the blockchain ecosystem robust & scalable.

Minions explain blockchain layers

It’s the underlying infrastructure layer that forms the basic blockchain network consisting of distributed nodes forming the peer-to-peer architecture. Layer 0 enables interoperability (cross-chain communication), blockchain protocols that are built on the same layer 0 can easily transfer tokens and data.

Prominent blockchains like Bitcoin. Ethereum, Solana, Near, etc are the layer 1 chains. These are the execution protocols that provide the environment for transactions, handle cryptographic algorithms, data, consensus and tokenomics. Native tokens of the chain are the medium to interact with smart contracts, access resources, and mint NFT.

Built on top of layer 1 chains, L2 solves the scalability problem of the blockchain trilemma by improvising on transaction speed (faster finality) & throughputs (higher transactions per second).

Layer 1 handles security, data & consensus while Layer 2 handles transactions. It takes away the transaction burden from layer 1 while taking the advantages of layer 1’s security and decentralization.

This is the utility layer where all the decentralized applications are built like DeFi, games & wallets. It gives abstraction where the user is only concerned about the application functionality and not the core protocols. It opens door for adoption & interoperability. For example, Trust Wallet & Metamask can be connected to multiple chains.