All the best and cheerful time of the day!
Let's start with blockchain...
This technology has been around for over 10 years...
And not just exists, but is widely distributed in many industries!
Blockchain technology has evolved so much that it has layers or levels: level 1, 2, 3 and 0...
Today we will try to find out what is their difference, advantages and in general!
We all remember that back in 2008 there was a very terrible financial crisis and at that moment ...
The mysterious Satoshi Nakamoto...
In general, blockchain technology has made, let's say, a "revolution" in the financial world and not only!
But there is the complexity of the blockchain, and this complexity lies in the fact that there are levels of the blockchain...
And here, for beginners or inexperienced blockchain enthusiasts, you need to understand what is the difference between them and where is it better to strive...
The price, capitalization and various priorities of the digital world directly depend on the blockchain level...
But let's talk about each level in more detail ...
Level 0
If you look at the blockchain as a house, then level 0 is the foundation, this level can be attributed to all digital technologies where blockchains are created...
In other words, it is the foundation of the blockchain...
Level 0 is about creating a functional, accessible, interoperable blockchain with all other levels...
Layer 0 links the blockchain to the infrastructure of the physical...
This is electricity, equipment, and Internet services, of course ...
Another important level 0 goal is CCIP!
CCIP stands for internetworking protocols...
Cosmos, Polkadot, Chain Link... These are examples of internetworking protocols!
Level 0 is good because it allows level 1, like Bitcoin, to work smoothly...
By the way, now level 1
Level 1
If level 0 is about software infrastructure, foundation, then...
That level 1 is about blockchains!
Yes, all Tier 1 projects are Blockchains!
Here you can immediately highlight the 2 most important blockchains - Bitcoin and Ethereum!
And of course Litecoin, Ripple, Monero, Solana...
Level 1 blockchains are like public blockchains!
Where everything is available to each of us and each of us can use the blockchain, the code for our own projects!
Which level 1 blockchain to choose for your project?
Here the developer looks to his taste!
But first of all, developers are interested in scalability, security and decentralization of the project!
Not to be confused with centralization!
Again...
Level 1 blockchains are their own blockchains, where transactions are processed and completed, in their own blockchain!
And that's where we can see consensus like PoW, PoS, and all the other technicalities, block times, and dispute resolution!
Level 2
If level 0 is the foundation and level 1 is the blockchain itself, then...
That level 2 is like contractors, in other words - sub-blockchains!
This is when the level 1 blockchains are already creating their blockchains...
For what?
And for better scalability and efficiency!
if we take Ethereum as an example, then it has a lot of sub-blockchains, where transactions are cheaper, and faster and more efficient...
Optimism, Polygon, Arbitrum...
But they are more centralized than decentralized...
And yes, they won't be able to run on level 2 if their "parent", aka level 1, is disabled!
These are the problems that Tier 1 contractors can have...
Level 3
But level number 3 is just about decentralization!
And to be more precise, these are decentralized applications (DApps)!
In other words - level 3 is action!
These are crypto wallets familiar to us, software applications such as decentralized exchanges, lending protocols, currency rate prediction markets and many other complex possibilities!
So, in principle, I tried to distinguish 4 levels!
Where you better dive as a developer or investor - choose for yourself!
But remember, blockchain is the future of projects of various levels, more and more every day!
And that is great!