SEC S17-W2 || Layer-3 blockchain.

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Source

This is my participation in a contest Layer-3 blockchain organized in SteemitCryptoAcademy by @crypto-academy.

The aim of layer 3 blockchain, which is specialized in fractal scalability is to address the limitations of the traditional blockchain's scalability. It uses hierarchical structures and advanced sharding techniques for this purpose. Let me give a description of the architecture components below.

Major Components of Architecture of layer 3 blockchain

Base Layer or Layer 1
This is the most prominent and fundamental layer of the blockchain. It's main function is to operate consensus mechanism such as; Proof of Work, Proof of Stake etc. Base layer validates transactions and maintains the security of the network.

Middle Layer or Layer 2
This is the second layer of blockchain. It handles transactions that are processing and sharding. Second layer do partition of the network into smaller subnetworks called Shards. It helps to process transactions in parallel, increasing throughput

Fractal Layer (Layer 3)
This layer is specialized for fractal scalability. Same as Layer two it's function is division. It split the shards into smaller sub-shards, this allow even more parallel processing and scalability.

Mechanisms Achieving Fractal Scalability
Let me explain what are the factors behind achieving the fractal scalability of the blockchain. I will explain here one by one.

Hierarchical Sharding:
Here a hierarchical structure is made, as it's name indicates. The network is divided into multiple layers of shards and this results in the form of hierarchical structure. This doesn't stop here, each shard can further be divided into sub-shards, allowing for exponential scalability.

Dynamic Sharding
The shards are allocated dynamically based on the transactions volume and the demand of the network. This helps us ensures the efficiency of resource utilization and adaptability to changing network conditions.

Cross-Shatd Communication
The sub-shards and shards are interacted through efficient cross-shard communication protocols. It ensure the the integrity and consistency of transactions across the network.

Chart View

This chart has all the three layers in it,the base layer is at the bottom, followed by the middle layer with two shards, and then fractal layer is on the top having two sub-shards within each shard.

This layer 3 architecture allows blockchain to achieve unparalleled scalability by managing the hierarchical structures, dynamic sharding, and efficient cross-shard communication.

The Layer 3 blockchain which is specialized in scalability often uses the phenomena of horizontal sharding to improve it's transaction processing capacity. This is a very simple process, where the network divides into smaller independent shards that can process transactions smoothly. A shard is then divided into sub shard and those subsets handle the network's total transactions, increasing throughput.

However Steem blockchain is completely different from layer 3 blockchain in this regard. The reason is, Steem uses a Delegated Proof-of-Stake (DPoS) consensus mechanism where a small group of validators, called witnesses, are responsible for the validation of transactions with in steem and also for the production blocks.STEEM isn't uses any sharding process, in fact it achieve high throughput through DPoS mechanism.

Blockchain networks use Sidechains and rollups for achieving the scalability, especially in layer 2 and layer 3 solutions. This is the reason we can say that Sidechains and rollups are very much crucial for blockchain networks.

Sidechains is always a subordinate chain along with the main blockchain. It always assets main blockchain in performing various functions.Sidechains allow transactions to be processed outside of the main blockchain, which help reduce the burden on the main chain and improve scalability. It's function is to handle specific tasks or transactions, and then settle the final state back to the main chain.

Rollups It's function is to make a single transaction out of the multiple transactions. It helps reduce the traffic and processed all the transactions that are needed in the main chain. Here we have two types of Rollups: Optimistic Rollups and ** Zero-Knowledge (zk) Rollups**.

Optimistic Rollups It's function is to assume that more of transactions are valid and execute only a dispute process, if there's an invalid transaction.

Zero-Knowledge (zk)Rollups It's function is providing strong security and maintaining scalability of the main blockchain. Zk Rollups ensure transaction's validity and data integrity. It doesn't reveal specific transaction details on main chain.

Let me show l,what are the effects if we apply these two concepts on Steem Blockchain?

In Steem sidechains have their specific functions. They handle tasks, like processing of special types of transactions or running decentralized applications (dApps). It helps to reduce the workload from the main Steem blockchain, which make main chain free to handle more transactions efficiently.

However Rollups have it's own unique function in Steem blockchain. It's function is the same I have mentioned above, bundling multiple Steem transactions into a single one, and reduce the load on the network and improving throughput. It facilitate users by increasing transaction confirmations rate and also lower transaction fees for users.

For fractal scalability and better decisions making, layer 3 blockchain introduces innovative solutions to address the challenges of decentralized governance. It implement multi-layered architecture where it's different layers can be used for making governance decisions. Each layer has it's own set of participants and decision-making mechanisms.

Fractal scalability in layer 3 blockchains means, the ability to scale both horizontally and vertically. Horizonal scalability means: adding more nodes while vertically scalability means improving the capacity of individual nodes. Without compromising on performance or security it allows the network to handle increased transaction volumes.

how does this compare to the governance structure of the Steem blockchain?

However Steem blockchain mechanism is completely different from it. It is already mentioned above. Let me say it again, that Steem uses a delegated proof-of-stake (DPoS) consensus mechanism for governance. Here the stakeholders give vote to witnesses, which are limited in number and these witnesses are responsible for validating transactions and creating new blocks.

Their is a drawback of this mechanism. A small number of large stakeholders could exert significant influence over the network, which is a question mark on the on Steem's governance system. It give us a sense of centralization with in Steem blockchain.

In conclusion we can say, that layer 3 blockchains offer more decentralized governance models, such as quadratic voting, liquid democracy, or DAO-based structures. All these have one aim, to ensure a more democratic and resilient decision-making process. In this model the power is distributed evenly among the participants and it helps reduce the risk of centralization with in the platform.

Introduction of sharding and interoperable have a significant impact on layer 3 blockchains specialized in fractal scalability. Sharding role is mentioned above, that it allows blockchain to divide their workload and also enable to increase throughout and scalability. However, interoperable blockchain facilitate seamless communication and data exchange between different blockchains.

Moreover, these advancement can facilitate layer 3 blockchains in another level, especially those focus on fractal scalability. This may lead to improve performance of it, increase transaction speeds, and enhanced network efficiency.

how could the Steem blockchain adapt to these developments?

As for as Steem blockchain is concern, such adoption could give steem a boom. It could improve it's competitiveness in the evolving blockchain landscape and can also attract more new users and developers that are interested in scalable and interoperable blockchain solutions.

This is all about my blog for today, hope you guys have enjoyed reading it. See you soon with a new amazing and interesting topic, till take care.