TL;DR:
- Layers in Blockchain are required for Scalability
- Scalability means throughput rate (measured by transactions per second)
- Don’t confuse layered structure of blockchain architecture with scaling solution layers
- Different layers of architecture brings different function to the stack
- Layer 1 is on-chain while layer 2 is off-chain
In the world of cryptocurrencies and blockchain, the terms "layer 1" and "layer 2" have become commonplace, leaving many enthusiasts and newcomers alike questioning their significance. Blockchain, at its core, is a complex and intricate structure, composed of various layers and components that work together seamlessly. To unravel the mystery behind layer 1 and layer 2, it's essential to delve into the layered structure of blockchain architecture.
Layered STRUCTURE Of Blockchain ARCHITECTURE
The concept of a layered structure in blockchain architecture is analogous to the layers of IT security, where a foundational layer (hardware/infrastructure layer) is established to support subsequent layers. The layered design of blockchain architecture, although not rigid, typically consists of the following layers:
Layer 1, Layer 2?
When discussions revolve around layer 1 and layer 2 in blockchain, it pertains to scaling solutions and performance improvements. Scaling in blockchain technology refers to increasing the system's throughput rate, measured in transactions per second.
Why is it important to layer?
The primary motivation behind layering in blockchain architecture is scalability. As cryptocurrencies gain widespread adoption in everyday life, blockchain layers play a crucial role in enhancing network security, recordkeeping, and overall functionality. Scalability is paramount, as it directly impacts the throughput rate, ensuring a faster and more efficient processing of transactions.
The compromise between decentralization and scalability is a challenge faced by blockchain developers. As the number of blocks in a blockchain network increases, the system's strength grows, but so does the complexity of the verification process. This complexity demands more computing resources, influencing the maximum achievable throughput without compromising security. Hence,
Adjusting the consensus mechanism for faster transactions can make the network vulnerable to attacks. Striking the right balance between decentralized governance and scalability is essential for the long-term viability and success of blockchain networks.
Content above is purely my understanding and opinion at the point of publishing. It does not necessarily represent absolute accurate information but merely sharing of knowledge on my part. Comment below for any inappropriate/misinformation.
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