Blockchain is a decentralized technology that enables secure and
transparent transactions without the need for a third party. It
is made up of a series of layers, each with its own specific
function.
Blockchain Architecture:
👷♂️ The Hardware Layer: At the foundation of blockchain are nodes - the network of computers powering it. These nodes decrypt transactions, forming the hardware layer of blockchain.
💾 The Data Layer: Next comes the data layer, where transaction details are securely stored. Each block contains crypto info, public keys, and sender's private keys, connecting to previous and subsequent blocks.
🌐 The Network Layer: This layer facilitates communication among blockchain nodes. It's vital for open systems like blockchain, ensuring nodes know about validated transactions.
🤝 The Consensus Layer: Imagine Romeo and Juliet as blockchain validators. They receive transactions which have to be decrypted and added to a block.
Transactions which Romeo receives are: A and B
Transactions which Juliet receives are: B and C
If both Romeo and Juliet validate the transactions and add them to the blockchain, then transaction B will be written twice on the blockchain. This means double spending will occur. To avoid this Romeo and Juliet compete and solve a cryptic mathematic puzzle and the one who solves first will be the one to add the block to the blockchain.
This form of consensus mechanism is known as Proof of Work.
In the case of Proof of Stake (POS) the validator is randomly picked by the system.
📱 The Application Layer: Apps are built on this layer - from wallets to social media, browsers, DEFI platforms, and NFT marketplaces. The only difference arises is the storage of decentralized data.
🧱 Blockchain Layers:
Layer 0: Blockchain in itself is called layer zero. The foundation of blockchain - the internet, hardware, and connections. It's the starting point for networks like Bitcoin and Ethereum.
Layer 1: Advancing from Layer 0, it maintains blockchain functionality, immutability, consensus methods, programming languages, block time, dispute resolution, and the rules and parameters that assure a blockchain network’s core functionality. Examples: Bitcoin, Ethereum, Cardano, Ripple. Limitation: Scaling.
Layer 2: The scaling solution for specific blockchains, working with third-party integration to overcome Layer 1 limitations and to enhance the number of nodes and as a result system throughput.
Layer 2 is used by protocols to promote scalability by separating some interactions from the base layer. It is the most popular approach for solving scaling issues attached to Proof of Work networks. At present, various industries have begun implementing layer two technologies.
Examples: Optimism, Arbitrum.
Layer 3: Also known as the "application layer," it hosts D-apps and protocols enabling real-world blockchain applications. Layer 3 is where blockchain shines in real-world scenarios.
Examples: Wallets, Uniswap.
🌐 Dive deep into the layers and discover the fascinating world of blockchain architecture! 💡 #BlockchainExplained #TechTalk #CryptoWorld 🚀
Top comments (0)