What is the difference between Layer 1 and Layer 2 based Blockchain?
Blockchain technology is one of the great innovations in the technology sector today. This technology is evolving rapidly with time. The use of blockchain technology in various sectors is currently serving customers with transparency and security and is customer friendly. One of the most significant advancements in the development of blockchain technology is the development of layer 2 based blockchain solutions. Layer 2 based blockchains are generally designed to improve the performance and scalability of Layer 1 based blockchains while also overcoming the limitations of Layer 1 based blockchains. I have discussed Layer 1 and Layer 2 blockchains separately in my previous content. Today I will share with you the difference between these two blockchains. So let's distinguish what are the differences between these two layer based blockchains:
| Layer-1 Blockchain | Layer-2 Blockchain |
|---|---|
| Layer 1 blockchains are typically designed for decentralization. Layer 1 based blockchains are architecture based on decentralized cryptocurrency networks. Bitcoin, Ethereum is the largest blockchain among Layer 1 based blockchains. Most of what we know about Bitcoin and Ethereum. Also Cardano is a Layer 1 based blockchain. | But layer 2 blockchains are more centralized. A layer 2 blockchain refers to network protocols typically layered on top of a layer 1 solution. Layer 2 based blockchains typically use smart logic only when it's solutions try to move transactions outside of the main blockchain. They therefore require a degree of centralization to ensure that transactions are properly verified. And it is well known as centralised. |
| Layer 1 based blockchains manage the processing and security of a cryptocurrency network through a common consensus process. These types of blockchains are typically managed through proof of work (PoW) or proof of stake (PoS). | Layer 2 protocol on the other hand uses Layer 1 blockchain for network and security infrastructure. Layer 2 based blockchains typically adopt a more flexible policy for completing transaction processing and the ability to scale the overall throughput on the network. |
| Layer 1 based blockchain technology is the first layer of blockchain technology. They are based on the base layer of blockchain. Hence, such layer 1 blockchains are known as base layer. All transactions in such layer-1 are recorded here. It is also known as base layer protocol. This is quite helpful in maintaining the security and integrity of the blockchain. | Layer 2 based blockchains are usually built on top of Layer 1 blockchains. Layer 2 based blockchains enable Layer 1 blockchains to manage the security and integrity of the blockchain. Layer 2 blockchains improve the performance and scalability of these base layers. |
| Layer 1 based blockchains improve scalability by changing the base protocol of the blockchain network. | Layer 2 based blockchains on the other hand use off-chain services or networks instead of scaling solutions to improve scalability. |
Finally it can be said that though these two Layer 1 and Layer 2 are two sides of the same cryptocurrency coin. But these two layered blockchains generally make blockchain networks faster and more suitable for a growing user base. They also help protect the integrity of the blockchain underlying both blockchain scaling solutions. Even both layer-based blockchains improve transaction handling capabilities when handling large numbers of transactions. There are inherent risks that can compromise the security of a particular blockchain—or even the integrity of the overall project—in these layered blockchains.
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Layer One and Layer Two Blockchain has been described very well. Web 3. World will soon be popular all over the world. From Layer One to Layer Two Blockchain is becoming more powerful. Thank you very much for sharing such a beautiful educational post with us. Those who are in the cryptocurrency world must know about them.
Thanks for adding more information.
You mentioned here about layer 1 and 2 of blockchain. As you told us about layer 1, you also told us about layer 2. Not only that you have also done a nice comparison of layer1 and layer2 with each other on the whole topic. I am very glad to read your post.
Thanks for your nice feedback
There are several differences between Layer 1 and Layer 2 based blockchains which you have presented nicely. Thank you. Go ahead.
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Yet another interesting article from you @kawsar8035, the difference between later 1 and layer 2 blockchain couldn't be any more clearer, thanks for the illumination.
Thanks
You have given a very nice explanation on the difference between layer 1 and layer 2 based blockchains. We all need to know about this because it is a very important issue. Thank you and I wish you the best.