What are Layers in blockchain?

Layers in the context of blockchain technology are levels of infrastructure that allow the construction of a scalable and efficient architecture. These layers are created with the aim of distributing different types of operations and functionalities, thus allowing greater flexibility and efficiency in the processing of transactions and the execution of smart contracts, among other aspects.

Thus, it is clear that the main purpose of the layers in blockchain is solve problems related to scalability, transaction speed and interoperability between different blockchains or systems.  This is possible by separating functions into different levels, making it easier to specialize each layer in a specific aspect, which improves the overall performance of the system.

Classification of Layers or Layers

The layers or Layers in blockchain can be mainly classified into three categories:

• Layer 1: the base layer, where the original blockchain is built. Examples include Bitcoin, Ethereum, and other major blockchains. It focuses on improving core infrastructure through consensus or data structure improvements.
• Layer 2: scalability solutions built on layer 1 that allow a greater number of transactions per second, without the need to alter the base layer. Examples include the Lightning Network for Bitcoin and various solutions for Ethereum such as Optimism and Arbitrum, which use rollup technology.
• Layer 3: Focuses on application and interoperability, allowing different blockchains and systems to communicate and work together more efficiently.

Why have these layers been created?

As we have discussed, layers in blockchain have been created as a solution to several key challenges facing first-generation blockchain technologies, such as Bitcoin and Ethereum. Thus, we can mention the following reasons why these layers have been developed:

Scalability

One of the most significant problems with first-generation blockchains is their limited ability to process transactions quickly and efficiently. For example, Bitcoin can process around 7 transactions per second (TPS), and Ethereum can handle between 15 to 30 TPS. These figures are insufficient to meet global demand, especially when compared to traditional payment systems such as Visa, which can handle thousands of TPS.

This is where higher layers come into play, such as Layer 2 solutions, which have been created to address this problem, allowing for higher transaction volumes without compromising the security of the base network (Layer1). After all, these solutions process transactions off-chain or through sidechains, adding a summary of these transactions to the main chain periodically, significantly reducing congestion and processing times. wait.

Efficiency in transaction processing

Related to the scalability issue is the cost of processing transactions, commonly known as “gas” in the context of Ethereum. During periods of high demand, the cost of gas can increase significantly, making transactions very expensive for users. The upper layers allow transactions to be processed more efficiently, reducing associated costs and making the blockchain more accessible to users and developers.

Interoperability

Interoperability refers to the ability of different blockchains to communicate and interact with each other seamlessly. First-generation blockchains largely operate as closed systems, limiting their ability to leverage the strengths of other chains. The development of layers that facilitate interoperability, such as certain Layer 3 solutions, seeks to create a more connected blockchain ecosystem, where assets and information can be transferred seamlessly from one chain to another.

Adaptability

Finally, the layers in blockchain allow for greater adaptability to a wide range of applications. By separating functions into different layers, developers can create specific solutions for various industries and use cases, from decentralized finance (DeFi) and gaming to voting and identity management, without overloading the base chain. This not only improves performance but also encourages innovation and experimentation in the blockchain ecosystem.

Impact of Layers on blockchain security

Another important point in the implementation of layers in blockchain technology can be seen in the significant implications for the security of the system. The impact of these layers on security is complex and multifaceted, offering both potential improvements and new challenges. The following explores how layering affects security in the blockchain ecosystem:

Security improvements

Specialization and optimization

By separating functionalities into different layers, each can specialize in handling certain types of operations or data, allowing for greater security optimization. For example, a layer designed specifically for financial transactions can implement advanced security protocols suitable for those types of operations, while another layer focused on smart contracts can optimize security in that context.

Main network decongestion

Layer 2 and Layer 3 solutions allow transactions to be processed off-chain, reducing congestion and limiting opportunities for certain types of attacks, such as distributed denial of service (DDoS) attacks, which can be more effective on networks. overloaded.

Security challenges and risks

Increased complexity

Adding layers increases the complexity of the blockchain system. With each additional layer, new protocols and interaction points are introduced, which can increase the risk of undetected security vulnerabilities. Security management becomes more complex, and compatibility issues between layers can arise.

Dependence on third-party solutions

Many Layer 2 and Layer 3 solutions are developed and maintained by third parties. This introduces a dependency on the security and reliability of these external entities. If a Layer 2 solution suffers a security breach, it could compromise funds or data managed through it, even if the base layer remains secure.

Interoperability and bridges

Interoperability between different blockchains and layers can introduce unique attack vectors, especially through blockchain bridges that facilitate the transfer of assets between chains. These bridges are critical points that, if compromised, can allow attacks that affect multiple systems simultaneously.

Security Risks in Off-Chain

Transactions and data that are processed off-chain (for example, in Layer 2 solutions) may not benefit from the same security inherent to the blockchain. This separation can introduce vulnerabilities if the security measures implemented in these layers are not as robust as those in the base chain.

Concrete examples

• Bitcoin and Lightning Network: Bitcoin is a clear example of Layer 1, while the Lightning Network is a Layer 2 implementation designed to allow almost instantaneous and very low-cost transactions.
• Ethereum and Layer 2 solutions: Ethereum, like Layer 1, has seen the development of multiple Layer 2 solutions to improve its scalability. An example of Layer 2 in Ethereum are Optimism and Arbitrum, two examples of implementations that use rollups to process transactions more efficiently.
• Polkadot and Cosmos: Although they do not strictly conform to the layer nomenclature, Polkadot and Cosmos are examples of projects that seek to address interoperability issues (an aspect of what a Layer 3 would be) by allowing different blockchains to interact with each other.

In summary, the layers in blockchain are essential to overcome the limitations of the first generations of this technology, allowing greater scalability, efficiency and interoperability. As blockchain technology evolves, we are likely to see more solutions developed at each of these layers.