What is Layer 0 in Blockchain?
TL;DR
Layer 0 protocols are essentially the infrastructure on which Layer 1 blockchains can be built. As a foundational layer for blockchain networks and applications, Layer 0 protocols are among many solutions aimed at fixing challenges facing the industry, such as scalability and interoperability.
Introduction
What constitutes a blockchain ecosystem? One way to categorize different parts of such an ecosystem is to classify them by layers, as if they were Internet protocols.
A blockchain ecosystem can be classified according to the following layers:
Layer 0: The underlying infrastructure as several Layer 1 blockchains can be built.
Layer 1: Base blockchains used by developers to build applications, such as decentralized applications (DApps).
Layer 2: Scaling solutions that handle activities outside of Layer 1 blockchains to lighten their transaction load.
Layer 3: Blockchain-based application layer, including games, wallets and other DApps.
However, not all blockchain ecosystems can be classified into these categories. Some ecosystems may lack certain layers, while others may be categorized as different layers, depending on the context.
Layer 0 protocols help to remedy the challenges faced by Layer 1 networks built with a monolithic architecture, such as the Ethereum network. By creating a more flexible base infrastructure and allowing developers to launch their own purpose-specific blockchains, Layer 0 hopes to tackle issues like scalability and interoperability more effectively.
What problems can layer 0 solve?
Interoperability
Interoperability refers to the ability of blockchain networks to communicate with each other. This feature enables a more tightly interwoven network of blockchain-enabled products and services, which in turn provides a better user experience.
Blockchain networks built on the same Layer 0 protocol can interact with each other by default, without the need for dedicated bridges. Using different iterations of cross-chain transfer protocols, Layer 0 allows an ecosystem’s blockchains to build on each other’s features and use cases. Some common outcomes of this are increased transaction speeds and greater efficiency.
Scalability
A monolithic blockchain like Ethereum is often overloaded because a single Layer 1 protocol provides all the critical functions, such as transaction execution, consensusand data availability. This creates a scaling bottleneck that Layer 0 can alleviate by delegating these critical functions to different blockchains.
This design ensures that blockchain networks built on the same Layer 0 infrastructure can individually optimize certain tasks, thereby improving scalability. For example, execution chains can be optimized to handle a high number of transactions per second.
Developer flexibility
To encourage developers to build on them, Layer 0 protocols often provide easy-to-use software development kits (SDKs) and a seamless interface to ensure developers can easily launch their own purpose-built blockchains.
Layer 0 protocols give developers great flexibility to customize their own blockchains, allowing them to define their own token issuance models and control the type of DApps they want built on their blockchains.
How does a Layer 0 protocol work?
There are different ways in which Layer 0 protocols work. Each of them differs in design, functions and focus.
But generally, Layer 0 protocols act as the most important and primary blockchain that backs up transaction data from various Layer 1 chains. While there are clusters of Layer 1 chains built on Layer 0 protocols, there are also cross-chain transfer protocols that allow tokens and data to be transferred across different blockchains.
The structures and relationships of these three components can vary greatly from one Layer 0 protocol to another. Here we will look at some examples:
Polka dot
Ethereum co-founder Gavin Wood designed Polka dot to allow developers to build their own blockchains. The protocol uses a main chain – called the Polkadot Relay Chain – and each independent blockchain built on Polkadot is known as a parallel chain, or parachain.
The relay chain works as one bridge between parachains to enable efficient data communication. It uses cuttinga method of partitioning blockchains or other types of databases, to make transaction processing more efficient.
Polkadot user proof-of-stake (PoS) validation to ensure network security and consensus. Projects that want to build on Polkadot participate in auctions to bid on slot machines. Polkadot’s first parachain project was approved at an auction in December 2021.
Avalanche
Launched in 2020 by Ava Labs with a focus on DeFi protocols, Avalanche uses a tri-blockchain infrastructure consisting of three core chains: the contract chain (C chain), the exchange chain (X chain), and the platform chain (P). -chain).
These three chains are configured specifically to handle main functions of the ecosystem, to increase security while aiming for low latency and high throughput. The X chain is used to create and trade assets, the C chain to create smart contracts, and the P chain to coordinate validators and subnets. Avalanche’s flexible structure also makes quick and cheap cross chain changes possible.
Cosmos
Founded in 2014 by Ethan Buchman and Jae Kwon, the Cosmos network consists of a main PoS blockchain called the Cosmos Hub and custom blockchains known as Zones. Cosmos Hub transfers assets and data between the connected zones and provides a shared layer of security.
Each zone is highly customizable, allowing developers to design their own cryptocurrency, with custom block validation settings and other features. All Cosmos apps and services hosted in these zones interact via the Inter-Blockchain Communication (IBC) protocol. This allows assets and data to be exchanged freely across independent blockchains.
Final thoughts
Depending on how they are designed, Layer 0 blockchains could potentially solve some of the industry’s challenges, such as interoperability and scalability. However, how successful Layer 0 blockchain adoption will be remains to be seen. There are many competing solutions that aim to achieve similar goals.
How big a role Layer 0 blockchains will play in solving industry challenges will depend on their ability to attract developers to build on these protocols, and whether the applications hosted on them provide real value to users.
