Layer 1 & Layer 2 – Here is what differentiates the blockchain networks!

Be it a Proof-of-Work or Proof-of-Stake blockchains, both have their own way of accommodating transaction volume in the network. All blockchain networks relay data and the network architecture is composed of two layers – Layer 1 and Layer 2 which are protocols operating above the underlying network.

Blockchain scalability – Why does it matter?

Best depicted by the blockchain experts of a Blockchain development company, scalability in a blockchain network can refer to a computer’s ability to manage the increasing amount of pressure on the database. To cope with the increasing workload, it is important to alter the system in terms of computing power, bandwidth, and servers.

The term “scalability” in blockchain comes with its own implications and a blockchain network is only developed to enable interactions between participants without the involvement of a controlling authority. Most of the time scalability in the blockchain is a comparative term and is the measure to show how a system can achieve a higher TPS than other existing systems or networks.

What differentiates Layer 1 and Layer 2 networks in Blockchain?

In a Decentralized network like that of a blockchain, the primary pathway would be Layer 1 which is the main network and the other can be Layer 2 which is a secondary network. In the blog, we will discuss the differences between the two networks.

·  Layer 1 blockchain:

As discussed earlier, the layer 1 network is the main network that is in charge of all the on-chain transactions with an abysmal speed of five to seven transactions every second. It is a base network with underlying infrastructure and has the capability of finalizing transactions without assistance from another network. It consists of consensus mechanism protocols that verify the transactions before adding them to the ledger.

Layer 1 network consists of – Network of nodes, a network of block producers, the main blockchain, and associated consensus mechanisms.

The layer 1 network is a tailored solution developed for the improvement of base protocols. Layer 1 network was introduced to enable better scalability for the entire ecosystem and can even facilitate increased block size compared to the base protocols. This allows the blockchain network to process more transactions on any specific block.

·  Layer 2 blockchain:

When compared to the Layer 1 network, the Layer 2 network is a secondary protocol built on an existing blockchain network. The protocol applied in Layer 2 ensures better TPS speed and lower transaction costs. This network is best known to lower the burden of the main network by acting as an auxiliary framework helping process transactions.

Layer 2 network help in – Reducing data load, retaining security, settling transactions on the mainnet, lowering fees, improving user experience, and expanding the scope of application.

Layer 2 network is independent of the base layer and the secondary protocols of the network allow transaction verification alongside minimizing tasks handled on the base network. Information verified on the Layer 1 network is then transferred to the main network or mainnet to ensure data immutability.

Concluding, when it comes to Blockchain network transactions, scalability is the main factor. Moreover, having dedicated protocols also make sure that cryptocurrencies are fast and scalable for everyday transactions. A layer 1 network is best utilized for optimizing performance and on the other hand, a Layer 2 network can help in increasing transactional throughput.