L2 technologies for enhancing blockchain solutions

Blockchain Levels: from L0 to L3

Blockchain technology continues to evolve, and the concept of layers is used to describe various aspects of this technology. Each layer can be viewed as a stratum that builds upon the previous one, offering enhanced capabilities. These layers reflect the evolution of blockchain technologies over time.

Level 0 (L0): The Foundation of the Blockchain

L0 is the basic structure of the blockchain - a chain of blocks containing transactions. This level serves as the foundation for all subsequent levels and ensures the integrity and security of transaction data. L0 also allows for interaction between L1 blockchains, enabling the transfer of assets between different networks. Examples of L0 blockchains include Project A, which allows developers to create their own L1 blockchains using the main relay chain; Project B - an open-source blockchain for creating decentralized financial applications; and Project C - a scalable ecosystem for developing standalone blockchains for specific tasks.

Level 1 (L1): Main Blockchain Networks

L1 refers to the main blockchain networks, such as [Ethereum] or (. These networks provide basic functionality, including smart contract execution and transaction processing. However, as their popularity grows, these networks face scalability issues and high fees.

Level 2 )L2[Bitcoin]: Scaling Solutions

L2 refers to additional protocols built on top of L1 to enhance performance and reduce fees. Among the main L2 technologies are optimistic rollups, which execute transactions off the main chain and periodically send the results to L1, as well as ZK-rollups, which use cryptographic proofs to confirm the validity of transaction batches. These solutions significantly increase the throughput of blockchains and reduce transaction costs while maintaining the security of the main network.

Level 3 (L3): Applications and Interfaces

L3 represents the level of applications and user interfaces built on top of L1 and L2. Here are the decentralized applications (dApps), which provide end users with access to blockchain features through user-friendly interfaces.

The development of a multi-layer blockchain architecture addresses key scalability and accessibility issues, paving the way for the mass adoption of the technology across various sectors.