Many of us are already familiar with Layer 1 blockchains such as Ethereum and Solana, but what about Layer 0 networks? How do these systems function and what are their primary purposes?
These are two very important questions to answer, as Layer 0 networks actually help to support the entire cryptocurrency ecosystem. The only issue is that their fundamentals can still be a bit trick to grasp. If we think of the crypto and blockchain ecosystem as an onion, the team at Crypto Lists are here to peel back the layers.
3 Best Layer 0 Blockchains
This is the toplist with the layer 0 networks, especially relevant in United States. There may still be restrictions what people in the your country are allowed to do when it comes to blockchains and cryptocurrencies. So make sure that you read up on the regulatory restrictions before investing. Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to loose.
Arweave Network
Arweave blockchain enables you to store data such as documents and applications, permanently.
Polkadot Network
Polkadot stands for any type of data across any type of blockchain.
Cosmos Blockchain
Cosmos is one of the most customizable ecosystem of connected blockchains.
Below we’ve got some answers to the burning questions you might have about this subset of blockchains. It’s good to do this kind of research before investing in a coin related to one of these networks. You can read about the major blockchains here.
Go directly to
- 1 3 Best Layer 0 Blockchains
- 1.1 What Exactly is a Layer 0 Blockchain?
- 1.2 What is the Difference Between Layer 0 and Layer 1 Networks?
- 1.3 What’s the Difference Between Layer 0 and Layer 2 Blockchains?
- 1.4 What Can I Find in the Layer 0 Top List?
- 1.5 A Quick Look at the Best Layer 0 Crypto Coins and Tokens
- 1.6 What’s the Future of Layer 0 Networks?
What Exactly is a Layer 0 Blockchain?
As if the world of cryptocurrencies was not already complicated enough, layers are yet another concept to understand. The best way to appreciate this concept is to think of the cryptocurrency ecosystem in a hierarchical fashion. So here goes…
In such a manner, Layer 0 protocols are essentially the digital “infrastructure” that provides the foundational utilities for developers who wish to launch their own (Layer 1) blockchains. These utilities are sometimes known as Software Development Kits or SDKs. Layer 1 networks therefore rely upon the Level 0 mainchain while still operating independently. In other words, the first layer – or layer zero – provides the digital “skeleton” required to launch Layer 1 dApps (decentralized apps).
Definitions of what exactly encompass each layer do vary, as the space is still in its relative infancy. So, it’s best to read a variety of sources should you need a completely comprehensive overview of the technological underpinnings.
What is the Difference Between Layer 0 and Layer 1 Networks?
So, we can see that Layer 0 systems serve an important purpose within the crypto ecosystem (although they do not often enjoy a great deal of limelight). However, there’s another valid reason why these networks are fundamentally different from Level 1 networks. The main issue is that Layer 1 protocols operate within what can be called a “monolithic” framework. To put it another way, crucial metrics such as data availability, consensus and execution must all be addressed within a single blockchain.
As the demand for Dapps continues to increase, this places a massive amount of strain upon the infrastructure. Rising gas fees and unexpected downtime are two results of such a situation. Layer 0 blockchains differ from Layer 1 networks in the fact that they address three practical concerns:
- Decentralization
- Security
- Scalability
Sometimes known as the “scalability trilemma”, Layer 0 networks compensate for the monolithic nature of Layer 1 protocols by providing developers the option to create customized blockchains that meet specific user requirements. If we boil all of the observations down into a single summary, it encompasses the fact that Layer 0 blockchains are more flexible than their Layer 1 counterparts.
What’s the Difference Between Layer 0 and Layer 2 Blockchains?
So, how do Layer 2 networks differ from Layer 0 blockchains? As you might have guessed, the main disparity here is that Layer 2 blockchains are built separately from Layer 1 networks. The primary intention here is to compensate for the scalability issues mentioned previously. Layer 2 networks are sometimes called “off-the-chain” systems due to the fact that they don’t need the first layer. This approach has been designed to address two understandable concerns:
- Transaction speeds
- Transaction throughput
For instance, Level 2 networks can pick up the proverbial slack in the event that Layer 1 protocols suffer from congestion. To summarize before moving on, the Layer 2 blockchain can be used to speed up Layer 1 transactions by grouping them together into a single bundle. So, Layer 2 networks are often associated with quicker processing times and lower transaction fees. Two examples of Layer 2 networks are Loopring and Polygon.
What Can I Find in the Layer 0 Top List?
We’re well aware that all of the information above can be a bit overwhelming if you happen to be unfamiliar with layers. This is why it’s a good idea to browse through the additional details of Layer 0 blockchains found within our top list. You can also supplement this knowledge by reading about cryptos by browsing through the numerous other articles written by the team at Crypto Lists.
For instance, the Polkadot blockchain employs protocols known as “parachains” in order to connect different blockchains together. These are linked via the “Polkadot Relay Chain”. Another Level 0 network known as Cosmos allows developers to launch their own blockchains through a series of “zones” that are connected by a central hub referred to as the “Inter-blockchain Communication Protocol”.
A Quick Look at the Best Layer 0 Crypto Coins and Tokens
Let’s finally examine two promising Layer 0 coins and tokens before concluding. Once again, Polkadot (DOT) and Cosmos (ATOM) rise to the occasion.
Polkadot is founded upon the Ethereum platform and offers several unique advantages including:
- Flexible models of governance
- An interoperability with other third-party blockchains
- A greater degree of transparency
- No platform fees
On the other hand, Cosmos is primarily concerned with scalability and compatibility between blockchains. Some aspects of this coin are:
- Coins can be staked to generate longitudinal interest
- Enhanced stability thanks to numerous nodes within the ecosystem
- Streamlined inter-blockchain connectivity
- Every holder has a stake in the direction that the platform takes
What’s the Future of Layer 0 Networks?
Now that we’ve waded through the ins and outs of different blockchain layers, what might the future have in store for Layer 0? Here’s a quick analogy to consider before answering this question. We can view the relationship between Layer 2, Layer 1 and Layer 0 blockchains as follows:
- Layer 2 represents the businesses, residences and organizations within a city.
- Layer 1 comprises the physical real estate found beneath these structures.
- Layer 0 networks are the roads, bridges and similar infrastructure that allows the properties to effectively communicate with one another.
Of course, we should also mention that some Layer 1 networks have already begun dealing with congestion issues by creating their very own scalable networks. The most well-known example in this case is Ethereum.
The main takeaway point here involves how quickly the cryptocurrency ecosystem is evolving. As decentralized applications are placed under even more strain, the need for efficiency and flexibility will inevitably increase. It’s therefore completely logical to assume that Layer 0 technology should become all but commonplace.
