Layer 0 blockchain technology is the foundation upon which other blockchains are built. It is the underlying infrastructure that provides interoperability, scalability, flexibility and security for Layer 1 blockchains. Over time the blockchain trilemma has become an ongoing issue in which different scaling Layers have tried to overcome.

The blockchain trilemma describes the problem faced by developers when building blockchains. 

The three core ideals of:

• Decentralization
• Security
• Scalability

All three of these are impossible to achieve simultaneously. One of these aspects is inevitably sacrificed to accommodate the other two.  

That’s why Layer 0 is such an important part of the blockchain. Let's look at them in more detail.

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The Functions of Layer 0 Blockchains

Layer 0 blockchains perform a number of important functions, including:

• Interoperability

Layer 0 protocols allow different blockchains to communicate with each other, which can lead to greater interoperability and a more interconnected blockchain ecosystem.

• Scalability

Layer 0 protocols can help to improve the scalability of blockchains by providing a way to distribute transactions across multiple chains. 

• Security

Layer 0 protocols can help to improve the security of blockchains by providing a common security framework for all Layer 1 chains.

• Flexibility

To encourage developers to build on them, Layer 0 protocols often provide easy-to-use software development kits (SDKs) and an intuitive interface to ensure developers and designers can launch their own purpose-specific blockchains quickly and easily. 

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Examples of Layer 0 Blockchains

There are a number of Layer 0 blockchains already operating, including:

• Cosmos

Cosmos is a prominent blockchain, becoming what is now known as the ‘The Internet of Blockchains’. It connects many of them together by securing interoperability and communication.

• Polkadot

Polkdot allows blockchains to communicate and execute transactions between one another. All of this without the need for a third party which ultimately cuts costs and increases efficiency.

• Avalanche 

It’s an open-source Layer 0 blockchain built on the Proof of Stake consensus mechanism. It mainly prioritizes scalability transaction speed, acting as a direct competitor to Ethereum. Avalanche has teamed up with AWS, the Amazon cloud computing provider.

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The Pros and Cons of Layer 0

There are different pros and cons to consider with Layer 0. Here they are:

Pros

• They aim to overcome the blockchain trilemma which has been an ongoing issue for many different developers and users over the years.
• Layer 0 offers initial infrastructure that other blockchain’s can’t offer. They help to build dApps deeper and give them more chances for scalability and use cases.
• The transaction speed is far greater on a Layer 0 perfect for mass onboarding.

Cons

• Layer 0 blockchains can still face issues with interoperability. This is especially true with dApps and transferring funds.
• There are different environmental impacts to consider with Layer 0 due to their high energy output.
• Centralization for a decentralized Layer should definitely be considered. A small concentration of miners can compromise the security and meritocracy of a network.

Layer 0 in Relation to Other Blockchain Layers

In addition to Layer 0, there are two other layers in the blockchain stack: Layer 1, Layer 2 and Layer 3.

• Layer 1

Layer 1 blockchains are the base blockchains that are used to run applications. They are responsible for processing transactions and storing data.

• Layer 2

Layer 2 solutions are built on top of Layer 1 blockchains to improve scalability and performance. They can be used to offload transactions from Layer 1 chains, or to provide additional features and functionality.

Layer 0 - From The Ground Up

Layer 0 blockchains provide the foundational building blocks for Layer 1 and Layer 2 solutions, and they help to ensure scalability, security, and interoperability.

They offer a playing field not experienced by Layer 1 thanks to updates in infrastructure and use cases.

‍To learn more about crypto and blockchain, visit the Cryptology Academy today.

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