Blockchain technology has emerged as one of the most significant innovations of the 21st century, promising to revolutionize everything from finance to governance. However, with its evolution, numerous challenges have also been identified and addressed, especially the well-known trilemma: the search for a balance between decentralization, security and scalability.
To overcome these challenges, the blockchain architecture has been conceptualized in three main layers: L1, L2 and L3. Each of these layers offers specific scalability and interoperability solutions.
On the other hand, as we explore the scalability solutions offered by the L1 and L2 layers, it is important to note that in addition to the well-known examples within the Ethereum and Bitcoin blockchains, there are other scalability systems that, while not as popular, play a critical role in other ecosystems.
Below, we explore these layers in detail, expanding with more examples and methods for scaling, using a table structure for ease of understanding.
Layer 1 (L1): The foundation of the blockchain
The L1 represents the original blockchain, including its base protocol, consensus mechanisms, and basic transactions. It is the most basic level, securing the network and processing transactions in a decentralized manner.
| Concept | Description | Examples |
| Blocks and Blockchain | Main data structure where transactions are recorded in sequential blocks. | Bitcoin, Ethereum |
| Consensus Mechanism | Algorithms that allow network nodes to agree on the state of the blockchain in a secure and decentralized manner. | Proof of Work (PoW), Proof of Stake (PoS) and their variants |
| Sharding / Danksharding | Database partitioning technique to distribute the workload, improving performance and scalability. | Ethereum 2.0 |
| Segregated Witness (SegWit) | Implementation that separates digital signatures from transaction data, allowing more transactions per block. Bitcoin | Bitcoin |
Additional methods in L1
- Change block size: Increase the block size to allow more transactions. Example: Bitcoin Cash, which increased the maximum block size to allow a higher volume of transactions.
- Pruning: Removing old or unnecessary data to keep the chain light. An example would be Ardor v3, which implements a pruning mechanism in its testnet where transactions are separated into blocks, allowing nodes to remove non-essential data to reduce the size of the blockchain without compromising security.
Layer 2 (L2): Scalability solutions
L2 builds on L1, proposing solutions that improve scalability without sacrificing security or decentralization. These solutions handle transactions outside the main chain but secured by it.
| Concept | Description | Examples |
| State Channels | Channels that allow transactions outside the main chain between specific parties, resolving in the chain only when necessary. | Lightning Network (Bitcoin) |
| Sidechains | Independent blockchains connected to the main one, allowing asset transfers and operations under different rules. | Liquid Network (Bitcoin) |
| Rollups (Optimistic y Zero-knowledge Rollups) | They group multiple transactions outside the main chain to process them as one, optimizing resources. | Optimism, Arbitrum, Polygon, Ethereum 2.0, among others. |
Layer 3 (L3): Interoperability between blockchains
Layer 3 focuses on interoperability between different blockchains, enabling efficient and secure communication and value transfer.
| Concept | Description | Examples |
| Interoperability | Facilitates communication and value transfer between different blockchains. | Polkadot, Cosmos, Ardor |
In-depth study of the concepts
L1 – Security and Decentralization
L1 solutions focus on the fundamental structure of the blockchain, seeking to optimize decentralization, security and scalability from the ground up. Innovations such as sharding and SegWit, as well as block size adjustments and pruning techniques, are critical to enabling more transactions to be processed efficiently while maintaining the principles of security and decentralization. These advances are critical to the long-term sustainability of blockchains.
L2 – The Key to Scalability
L2 solutions directly address the challenge of scalability by processing transactions off the main chain, reducing congestion and latency. State Channels and sidechains provide fast and efficient transaction paths, while rollups provide advanced methods for aggregating transactions, ensuring security and efficiency. These technologies are essential for adapting blockchains to increasing volumes of use without compromising their fundamental characteristics.
L3 – Overcoming Interoperability Barriers
Finally, L3 focuses on interoperability, a critical component for the next generation of blockchains. Facilitating seamless and secure communication between different blockchains enables a richer and more efficient ecosystem where assets and data can be seamlessly transferred between networks. This not only expands the potential uses of blockchain technology, but also opens the door to future innovations in decentralized finance, digital identity, and more.
Conclusion
Blockchain’s layered architecture demonstrates a pragmatic and modular approach to overcoming the challenges inherent in this disruptive technology. While L1 and L2 focus on strengthening security, decentralization and scalability, L3 aims at interoperability, expanding the scope and functionality of blockchain technology. This layered approach allows blockchain to not only adapt and scale according to current needs, but also be prepared for future needs, ensuring its position as one of the most revolutionary technologies of our time.
Want to learn more about blockchain technology? Don’t miss these resources!
- Exploring the blockchain technology
- The ultimate guide to the Bitcoin blockchain: Understanding how it works and its potential
- Ethereum and its evolution towards Ethereum 2.0
- Harnessing the power of blockchain technology in businesses
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