Layer 0 Blockchain: The Infrastructure Behind Scalable Networks
The blockchain ecosystem incorporates a wide variety of different networks and projects. To make it easier to understand how all these systems work, blockchain experts like to classify blockchain networks into three separate network layers. The majority of blockchains are either Layer 0, Layer 1 or Layer 2 networks. Each layer offers blockchain developers a specific set of pros and cons. This guide takes a deep dive into Layer 0 blockchain networks. Keep reading to learn how Layer 0 chains work — and why they're so useful.
Key Takeaways:
A Layer 0 blockchain is the underlying infrastructure that helps a blockchain run. This base-layer blockchain usually doesn't have its own crypto token or complex contracts.
A Layer 0 blockchain is a simple set of protocols and data that make it easy to develop all sorts of compatible Layer 1 blockchains.
What Is a Layer 0 Blockchain?
A Layer 0 blockchain is the underlying infrastructure that helps a blockchain run. This base-layer blockchain usually doesn't have its own crypto token or complex contracts. Instead, it's a simple set of protocols and data that makes it easy to develop all sorts of compatible Layer 1 blockchains.
You can think of a Layer 0 blockchain layer as being similar to the operating system on which a computer runs. Much like Windows or macOS, it handles basic tasks and creates a structure that other projects can run on. Meanwhile, the Layer 1 implementation layer is like a standard computer program (think of Google Chrome). It has a specific function and a set of tools you can use to complete tasks. Finally, a Layer 2 chain is like a web browser extension. It runs on top of standard systems to provide niche features that specific users prefer.
Why Are Layer 0 Blockchains Necessary?
Layer 0 blockchains are a somewhat new design. Many older blockchain networks simply built Layer 0 protocols into their initial frameworks. However, there are some real benefits to keeping these protocols separate and building an entire network layer just for Layer 0 concepts.
Interoperability
Modern blockchain systems typically operate as closed networks. Since each blockchain network generally doesn’t communicate with another, there's no quick and easy way to transfer data between chains. One of the main perks of a Layer 0 blockchain is that any subsequent layers built on it are interoperable. Since any chain built on the blockchain layer will share the same basic structure, different chains can easily communicate with each other.
The infrastructure of a Layer 0 lets various chains run the same types of smart contracts and send data back and forth. This blockchain interoperability makes it easier for developers to design applications, and it simplifies things for blockchain users.
Scalability
Another problem that a Layer 0 blockchain can solve is the issue of blockchain scalability. Currently, many of the leading networks struggle to handle large numbers of users. When there are multiple people making transactions, processing times slow and fees tend to rise. Fortunately, the interoperability of Layer 0 chains also leads to some unique scalability solutions.
Developers who are addressing scalability challenges can create similar chains that run in parallel on top of the Layer 0 network. This allows them to process transactions simultaneously and manage more transactions at once. The ability to use sharding and other scaling solutions on Layer 0 systems ultimately leads to increased transaction throughput and reduced fees.
Developer Flexibility
A Layer 0 blockchain also helps to address issues with development. Designing projects that run on a blockchain network can be tricky, and many developers struggle to find a system that offers the right software development tools. With Layer 0 chains, blockchain development is a lot more convenient. Blockchain developers have a helpful framework, but they aren't constrained by an unwieldy set of rules. Instead, they can easily craft their own personal blockchain layers that address the specific needs of their projects. Layer 0s create a supportive structure so that creativity can flourish.
How Does a Layer 0 Blockchain Work?
Every Layer 0 blockchain is a little different. Some may employ different smart contracts or use different consensus mechanisms to process data. Despite these differences, most chains will still rely on the same basic blockchain concepts. The typical Layer 0 blockchain uses a blend of these mechanisms.
Mainchain
The mainchain in a Layer 0 blockchain is the primary system that connects all other components. It maintains a running record of transactions that’s regularly updated with the information found on other blockchains in the network. The base layer blockchain also operates as a data layer that stores the information other chains need to function.
Sidechains
The sidechains in a Layer 0 ecosystem are usually Layer 1 blockchains. They're independent blockchains with their own validator nodes, smart contracts and users. Each implementation layer follows the structure of the main Layer 0, but they may also incorporate their own applications. Some systems also run an application layer in the form of a sidechain that handles specific games or other apps.
Cross-Chain Transfer Protocol
Cross-chain transfer protocols are the bridges that move information back and forth between chains. They securely connect with both sidechains and the mainchain. Additionally, they can transfer both tokens and data, so they allow for all sorts of necessary digital assets to pass back and forth between the various parts of a Layer 0 blockchain.
Hardware
Layer 0s are sometimes called the hardware infrastructure layer because they often incorporate hardware into their design. In addition to protocols for handling hardware, a Layer 0 hardware infrastructure layer can also include servers, data centers and other types of technology.
Pros and Cons of a Layer 0 Blockchain
Not every system uses a Layer 0 blockchain setup. Though this blockchain layer can be quite useful, it also has some potential downsides. Developers need to consider these pros and cons when deciding whether or not to use a Layer 0 chain.
Advantages of Using a Layer 0 Blockchain
Following are some of the reasons that people choose Layer 0 blockchains.
Security: By creating a strong set of security protocols from the start, Layer 0 chains can ensure a blockchain system runs as securely as possible.
Decentralization: A Layer 0 blockchain can provide decentralized blockchain interoperability, since it's often run by a DAO or another solution for creating decentralized networks.
Compatibility: All of the united blockchain protocols on a Layer 0 blockchain let multiple blockchain networks interact with each other seamlessly.
Scalability: Some of the leading scaling solutions use Layer 0s because they provide a convenient way to address scalability challenges and increase transaction throughput.
Problems With Layer 0 Blockchains
Some blockchain developers prefer to skip the Layer 0 blockchain concept because it can lead to the following problems.
Complexity: Structuring a Layer 0 blockchain to function as multiple chains makes any project more complex. Some developers prefer to create a single united system, instead of the mainchain and sidechain construction of a Layer 0 blockchain.
Environmental Issues: The consensus mechanisms used by Layer 0s are often prone to using high amounts of energy. This type of network layer can lead to some issues with inefficient power consumption and environmental damage.
Lack of Familiarity: Since the idea of a Layer 0 blockchain is so new, it might struggle to gain widespread adoption. Some developers who might be resistant to learning new concepts may prefer more familiar blockchain network concepts.
Best Layer 0 Projects
To better understand what a Layer 0 blockchain is, it's useful to take a look at some examples. Most Layer 0s are marketed as scaling solutions, but there are also several that appeal to blockchain developers and users of decentralized applications (DApps).
Here are some of the most popular types of Layer 0 blockchains currently available.
Cosmos
Cosmos is a blockchain ecosystem that markets itself as a scaling solution for developers. It boasts transaction rates as low as 500 milliseconds, and fees of just $0.01 per transaction.
This Layer 0 blockchain is especially popular with people looking to build commercial applications. Cosmos SDK’s flexible, detailed software development kit has been used by hundreds of companies.
The Cosmos design features an interoperable meta layer that connects to the Cosmos Hub, which then connects to multiple blockchain zones that offer different features to users. To further enhance scalability, Cosmos offers a proof of stake (PoS) consensus mechanism that secures the network without requiring excess computing power.
Polkadot
Polkadot is a Layer 0 blockchain designed by Gavin Wood, one of Ethereum’s co-founders. Though the Polkadot's blockchain protocols were originally focused on scalable messaging, its Layer 0 blockchain now includes a lot of other features as well. It can easily process 1,000 transactions per second (TPS), and has a user-driven network governance system. Polkadot is one of the most popular Layer 0s, with widespread adoption in the crypto community.
The Polkadot network features a mainchain, called a relay chain, and multiple user-created sidechains. These sidechain blockchain layers offer a few different connectivity and purchasing options. There are permanently-connected parachains, auctioned off to create new blockchain platforms, and there are also parathreads that charge users on a "pay as you go" basis; users can disconnect from Polkadot when the parathreads aren’t in use. Polkadot uses a consensus mechanism called Nominated Proof of Stake (NPoS) as its consensus protocol to create a secure yet scalable solution.
Avalanche
Avalanche markets itself as a Layer 0 blockchain for scalable smart contracts. This system is focused on helping developers build DApps. It uses advanced tooling and offers a lot of helpful configurability options. Avalanche prides itself on being so easy to use that developers can launch a web3 design on its application layer in less than 60 seconds. It's also a highly scalable system that’s capable of confirming thousands of TPS.
Avalanche is an open-source protocol created by a team of crypto enthusiasts and managed by a decentralized network governance system. Its blockchain system uses four different protocols — Slush, Snowflake, Snowball and Avalanche — as its consensus algorithms. They work together to confirm transactions through randomized voting. The framework also includes bridging and database optimization to allow for fast and convenient information transfers.
Venom Foundation
Venom’s Layer 0 blockchain boasts an impressive transaction speed of 100,000 TPS. It's also an affordable option, since the average transaction fee is $0.0002 or less. This scaling solution supports developers and offers the option to create both fungible and non-fungible tokens on the Venom blockchain. It also stands out from other scalability solutions because it has security and compliance features that are required to run traditional finance applications on decentralized networks.
Venom Network has a zero-emissions policy, thanks to its efficient PoS consensus mechanism. It achieves even greater transaction throughput with the addition of workchains and sharding. Its Layer 0 blockchain runs multiple Layer 1 workchains that can break up into individual shards during times of high network traffic. Users can choose the chain on which they wish to work; some offer additional cost savings, security features or interoperability benefits.
The Bottom Line
The Layer 0 blockchain is a welcome addition to blockchain technology. By providing an underlying infrastructure for other networks to run on, it provides extra blockchain scalability and interoperability. While it takes a little more time and effort to design, this type of blockchain ecosystem may make it much easier to run large blockchain platforms with numerous DApps.
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