Do you know? What is the diffence between Layer1 and Layer2?
Mr. KB from xWIN uses the analogy of “shinkansen” (bullet train) and “zairaisen” (conventional train) to describe the difference between Layer1 and Layer2 in blockchain technology.
Recently, the terms Layer1 and Layer2 have been widely used in the context of blockchain technology. Let’s take a closer look at what Layer1 and Layer2 are:
Layer1:
Layer1 is the foundational layer of a blockchain network. It provides the most critical functions and maintains the security and decentralization of the blockchain. Examples of Layer1 include the Bitcoin blockchain and the Ethereum main network (Ethereum Layer1).
Key features of Layer1 include:
Security and Decentralization: Layer1 ensures the security of the network by providing rules for transaction verification and the generation of new blocks. It also achieves decentralization by having many nodes that maintain and manage the data.
Consensus Protocol:
Layer1 uses a consensus protocol to confirm new transactions and add blocks to the blockchain. For example, Bitcoin uses Proof of Work (PoW), while Ethereum is transitioning from PoW to Proof of Stake (PoS).
Transaction Processing:
Layer1 performs basic transaction processing, but there are limitations to its ability to handle high throughput or offer low transaction fees. High traffic can lead to transaction delays and high fees.
Layer2:
Layer2 is a scaling solution built on top of Layer1 to overcome its limitations and improve the efficiency of the blockchain. Layer2 can be implemented as off-chain or side-chain solutions, reducing the load on Layer1, speeding up transaction processing, and lowering fees.
Key features of Layer2 include:
Scaling: Layer2 extends the transaction processing capacity of Layer1, allowing it to handle more transactions simultaneously. This improves the overall network throughput and reduces transaction delays.
Low Transaction Fees (Gas Fees):
Layer2 reduces the cost of transaction processing, providing users with lower transaction fees. This makes blockchain transactions more affordable.
Security:
Layer2 leverages the security provided by Layer1. In other words, final decisions regarding transaction verification and smart contract execution are still secured by Layer1, ensuring high security while improving efficiency.
Popular examples of Layer2 solutions include Arbitrum, Optimism, Lightning Network (for Bitcoin), and Plasma.
In summary, Layer1 provides the fundamental infrastructure of a blockchain, while Layer2 extends this infrastructure to achieve more scalability and efficiency in transaction processing.
