Blockchain has transformed data storage and transmission. It is a 21st-century revolutionary invention that will soon be in our daily internet apps. However, Blockchain’s intricacy makes it unfamiliar to people. Let’s simplify blockchain and its layers in this essay.
Blockchain preserves transaction records on a distributed ledger. Bitcoin’s blockchain records every Bitcoin transaction. Its openness makes it a better record-keeping and verification method. Everyone can see every transaction on a public blockchain.
Everyone who validates transactions owns a blockchain. No single point of failure means a blockchain is almost hard to attack since it has no genesis. Clear transparency, no intermediaries, and lower operating expenses.
Now that we’ve identified blockchain’s basics, let’s explore its levels and functions.
Blockchain has five layers: hardware infrastructure, data, network, consensus, and application. Each layer is functionally distinct. These layers make the blockchain a full solution for data management and user-facing apps.
The Hardware Layer
Information is shared peer-to-peer on blockchains. The hardware layer is the blockchain’s computer network. Most significantly, blockchains are the total of their nodes. Nodes are machines or networks that decode transactions.
The Data Layer
Transaction information are saved in the data layer following the hardware layer. A block (the basic unit of a blockchain) stores the crypto transmitted, the receiver’s public key, and the sender’s private key. Each data block is related to the previous and next created blocks. The initial block of the network, the genesis block, is only linked forwards.
The Network layer
This layer handles blockchain node communication. Since blockchain is open, each node must know which transactions other nodes are verifying. Communication is enabled via the network layer.
The Consensus Layer
This layer validates blocks. Use an example to understand the consensus layer. Assume John and Mark are blockchain validators. Transactions must be decrypted and put to blocks.
Transactions John receives: A and B
Mark gets B and C transactions.
If John and Mark verify and add transactions to the blockchain, transaction B will be written twice. There will be double expenditure. To prevent this, John and Mark compete to answer a cryptic maths challenge, and the first to do so adds the block to the blockchain. This consensus technique is Proof of Work.
Proof of Stake (POS) randomly selects the validator.
The Application Layer
Application layer in blockchain is where applications are constructed. These applications may be anything. Wallets, social media, browsers, Defi apps, and NFT platforms. The backend data storage is decentralized, yet the UI/UX is the same as other applications.
Blockchain Layers
Layer 0:Blockchain is layer zero. Blockchain requires internet, hardware, and numerous connections. Layer zero blockchain lets Bitcoin, Ethereum, and other networks to run. Blockchains may communicate between levels via Layer 0. Layer 0 offers the basic infrastructure for blockchain.
Layer 1:Layer 1 blockchain improves layer 0. The blockchain network functions under this layer. Layer one blockchains have scalability issues. Layer 1 will be affected by layer 0 protocol modifications and difficulties. Also termed an implementation layer. Layer one blockchains include Bitcoin, Ethereum, Cardano, Ripple, etc.
Layer 2:Layer 2 deleted numerous interactions from layer 0. Specific blockchains scale with layer 2 blockchain. It eliminates layer 1 constraints and allows third-party integration. It is the most common POW network scaling solution. Many businesses are using layer two technology.
Layer 3:The “application layer” is Layer 3 blockchain. This layer hosts DAapps and other protocols that allow other apps. The blockchain protocol has two major sublayers: application and execution. It is the strongest option to separate blockchains with cross-chain capabilities for actual interoperability.