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The Crucial Components of a base layer blockchain

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The base layer blockchain isn’t too complex of a technology to understand. The base layer is the core chain – the blockchain – that sets the network rules and consus. Any other dApps, protocols, and layer 2 chains allowed to build on the base layer rely upon it to function.

Layer 2 chains are more advanced and harder to grasp conceptually as to how they work and what their function on a blockchain is. The role of a layer 2 blockchain is one of several things:

  • To increase the blockchains functionality through extension to other blockchains, especially to scale the network.

  • To improve network experience by easing network congestion, cutting down fees, and speeding up processes.

  • To add value to the network via tools, services, opportunities, and entertainment.

All layer 2 chains serve one of these purposes. There’s no slowing down in the recent layer 2 evolution over the past 2 years as most networks without a planned layer 2 framework have strained to a point where they could no longer scale or function without any serious issues.

The many variations of layer 2 chains

There are various layer 2 chains to serve a large extent of different requirements:

  • Nested blockchains – This is a second chain blueprinted off the consensus layer which primarily exists in order to deal with transactions.

  • Zero-Knowledge Rollups – These are a scalability solution that allow blockchains to validate transactions faster – usually instantly. They also minimize gas fees as they scale, making them one of the biggest assets available to networks that struggle with fees.

  • Sidechains – While connected to the main blockchain by a bridge, sidechains use their own consensus mechanism to operate. In this way they can add a unique operation, tool, or asset to the network that isn’t accessible on the mainnet.

  • Shard Chains – These chains split networks into portions or shards. Each shard contains its own independent state, meaning a unique set of account balances, available assets, and smart contracts.

  • Plasma Chains – Are used to ensure individual token and asset information stored on the network is true.

  • Optimistic Rollups – Enable smart contracts to run at scale while still being secured by the network.

  • State Channels – This layer is a two-way communication channel where both parties involved can execute transactions off-chain safely.