Cryptography, game theory, and other modern technologies are combined to create the concept of blockchain technology. So what are the blockchain layers and what is layer1. Let’s find out by reading the article below.
What are the blockchain layers?
A blockchain is a decentralized digital ledger consisting of blocks that record data over a peer-to-peer (P2P) network. Once information is stored on this ledger, it is nearly impossible to delete, alter and hack. It is this unique feature of blockchain that has inspired many people to create their own blockchain-based businesses. Furthermore, the blockchain does not belong to a single entity, but to everyone involved in validating transactions. This eliminates a single point of failure, which means it is nearly impossible to hack the blockchain, as it has no point of origin. It ensures transparency, removes middlemen and minimizes operating costs.
Blockchain is mainly composed of 5 layers: hardware infrastructure layer, data layer, network layer, consensus layer and application layer. Each layer has a unique function. Together, these layers make blockchain a complete solution, from data management on the backend to enabling user-facing applications on the frontend.
The Hardware layer
Blockchain is based on peer-to-peer information sharing. The computer network that contributes to the computing power of the blockchain forms the hardware layer. Most importantly, blockchains are the sum of all the nodes that make them up. A node is a computer or network of computers that decrypt transactions.
The Data layer
The next layer after the hardware layer is the data layer where transaction details are stored. A transaction stored on a block (the basic unit of a blockchain) contains details of the cryptocurrency sent, the receiver's public key, and the sender's private key. Each block with data is connected to the previous block and the next block generated. Only the genesis block, the first block of the network, is connected forwards, not backwards.
The Network layer
This layer handles communication between nodes on the blockchain. Since the blockchain is an open system, each node must know the transactions that other nodes are validating. The network layer supports this communication.
The consensus layer
This layer is responsible for the validation of blocks. Let's understand the consensus layer with an example. Suppose John and Mark are two validators on the blockchain. They receive transactions that must be decrypted and added to a block.
The transactions John receives are: A and B
The transactions Mark received are: B and C
If both John and Mark validate the transactions and add them to the blockchain, transaction B will be written twice on the blockchain. This means double spending occurs. To avoid this, John and Mark compete and solve a mysterious math puzzle, the first person to solve will be the one who adds the block to the blockchain. This form of consensus mechanism is known as Proof of Work.
What is layer 1?
Layer 1 blockchains are an advancement of Layer 0. Below this layer, the blockchain network is functionally maintained. However, scaling is a limitation of layer-1 blockchains. Any changes and issues that arise in the new protocol for layer 0 will also affect layer 1. It is also known as the implementation layer. Examples of layer one blockchains are Bitcoin, Ethereum, Cardano, Ripple, etc.
I hope this article will help you to learn what are the blockchain layers and what is layer1. Blockchain technology is complex to understand, but with a little effort, its uses and applications can be realized.
