What’s the difference between Blockchain Layer 0 1 2 3

As blockchain is the core technology behind ALL cryptocurrencies, thousands of tokens you see in the market coexist within layers. So let’s see how they connect!

🛣 0️⃣ The Layer 0 blockchain is the first layer of all blockchain protocols, connecting seamlessly with other protocols to build interconnected value chains. Cosmos and Polkadot are examples of Layer 0 Blockchains. The Binance Chain is built on top of Cosmos. Polkadot’s bridges allow parachains and parathreads to connect to external networks like Ethereum and Bitcoin. 

💻1️⃣ The best analogy for The Layer 1 blockchain is “The computer”. With its consensus mechanisms, L1 allow developers to build upon their blockchain. Ethereum, Binance Chain,  and Solana are examples of L1 platforms. 

⛓2️⃣ The Layer 2 blockchain solves different problems that arise in the Layer 1 Blockchain, and also, Layer 2 can be defined as a scaling solution for a certain blockchain. It inherits security from its respective Layer 1 chain. Polygon, for example, is a Layer-2 Scaling solution that runs on top of Ethereum; it solves the scalability issue in Ethereum and charges a lot lower gas fees for transactions.

📲3️⃣ The Layer 3 blockchain is also known as the application layer. It is a layer that hosts DApps as well as the protocols that allow the applications to function. For example, metaverse games like Decentraland (MANA), MakerDAO (MKR), a peer-to-peer organisation created on the Ethereum network and Uniswap (Uni), a decentralized protocol for automated liquidity provision on Ethereum.

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