Summary

Layer 0 protocol is essentially the infrastructure on which Layer 1 blockchain can be built. As the foundational layer for blockchain networks and applications, Layer 0 protocols are one of many solutions dedicated to solving challenges faced by the industry, such as scalability and interoperability.

Introduction

What does the blockchain ecosystem consist of? One way to divide the various components of the blockchain ecosystem is to think of it as an Internet protocol and categorize it by layers.

The blockchain ecosystem can be classified into the following levels:

Layer 0: The underlying infrastructure of multiple Layer 1 blockchains can be built.

Layer 1: Used by developers to build applications such as decentralized applications (DApps) The basic blockchain.

Layer 2: A scaling solution that handles Layer 1 blockchain activity to reduce its transaction load plan.

Layer 3: Blockchain-based application layer, including games, wallets and other DApps .

However, not all blockchain ecosystems fall under this category. Depending on the context, some ecosystems will have certain layers missing, with the rest layered in different categories.

The Layer 0 protocol helps solve the challenges faced by Layer 1 networks built on a single infrastructure, such as the Ethereum network. Layer 0 is expected to more effectively solve issues such as scalability and interoperability by creating a more flexible infrastructure and allowing developers to launch their own dedicated blockchains.

What problems can Layer 0 solve?

Interoperability

Interoperability refers to the ability of blockchain networks to communicate with each other. With this attribute, a network of blockchain-enabled products and services can be more closely integrated to provide a better user experience.

By default, blockchain networks built in the same Layer 0 protocol can interact with each other without the need for specialized bridging. Layer 0 uses different iterations of cross-chain transfer protocols so that individual blockchains in a single ecosystem can build on each other's functionality and use cases. The general result of this is increased transaction speed and efficiency.

Scalability

Blockchains as large as Ethereum have a single Layer 1 protocol providing all major functions such as transaction execution, consensus, and data availability, so they are often congested. This creates a scaling bottleneck that Layer 0 alleviates by delegating these major functions to different blockchains.

This design ensures that blockchain networks built on the same Layer 0 infrastructure can each optimize certain tasks, thereby Improve scalability. For example, the execution chain can be optimized to increase the number of transactions processed per second.

Developer flexibility

In order to encourage developers to build on this foundation, Layer 0 protocols will provide easy-to-use software development kits (SDKs) and seamless interfaces to ensure that developers can easily launch their own dedicated blockchains.

Layer 0 protocol provides developers with great flexibility to customize the blockchain. They can customize the token issuance model and decide the type of DApp they plan to build in the blockchain.

How does the Layer 0 protocol work?

The Layer 0 protocol operates in multiple ways. Each mode of operation differs in design, functionality and focus.

But generally speaking, the Layer 0 protocol serves as the main basic blockchain and can back up the transaction data of various Layer 1 chains. . With the Layer 1 chain cluster built on the Layer 0 protocol and the cross-chain transfer protocol, tokens and data can be transferred between different blockchains.

The structures and relationships of these three components in various Layer 0 protocols are quite different. Let's look at the following examples:

Polkadot

Ethereum co-founder Gavin Wood designed Polkadot where developers can build their own blockchains. The protocol uses a main chain called the "Polkadot Relay Chain", while individual blockchains built on top of Polkadot are called "parachains."

The relay chain acts as a bridge between parallel chains to achieve efficient communication of data. The relay chain uses sharding, a method of splitting a blockchain or other type of database, to improve transaction processing efficiency.

Polkadot uses Proof of Stake (PoS) verification to ensure network security and consensus. Projects to be built in Polkadot are required to participate in a slot bidding auction. Polkadot’s first parachain project was approved in the December 2021 auction.

Avalanche

Avalanche is developed by Ava Labs Launched in 2020, focusing on DeFi protocols. Avalanche adopts a triple blockchain infrastructure composed of three core chains: contract chain (C chain), transaction chain (X chain) and platform chain (P chain).

These three chains are specially configured to handle the main functions in the ecosystem to enhance security, reduce latency and improve throughput. The X chain is used to create and trade assets, the C chain is used to create smart contracts, and the P chain is used to coordinate validators and subnets. Due to its flexible structure, Avalanche can also enable fast and low-cost cross-chain exchanges.

Cosmos

Cosmos Founded in 2014 by Ethan Buchman and Jae Kwon, the network consists of a proof-of-stake blockchain mainnet called Cosmos Hub and customized blockchains called shards. The Cosmos hub can move assets and transmit data between interconnected partitions, providing a shared security barrier.

Each partition is highly customizable, allowing developers to design their own encryption, custom block verification settings, and more Function. All Cosmos applications and services hosted in a zone interact through the Inter-Chain Communication (IBC) protocol. This enables assets and data to be freely exchanged between independent blockchains.

Summary

Based on the way it is designed, Layer 0 blockchain is expected to solve various challenges in the industry such as interoperability and scalability. However, it remains to be seen how far the popularity of Layer 0 blockchain can successfully go. There are many other solutions in the industry that aim to achieve similar goals.

How useful Layer 0 blockchains can be in solving industry challenges will depend on whether they can attract developers to build in these protocols. , and whether applications hosted on the protocol can provide real value to users.

Further reading

• What is a block Layer 1 in the chain?

• Blockchain Layer 1 and Layer 2 expansion solutions

• What is the blockchain ternary paradox?