Close Menu
Crypto Valley Journal
    Facebook X (Twitter) Instagram
    Crypto Valley Journal
    • Hot Topics
      • News
      • Minds
    • Focus
      • Background
      • Blockchain
      • Legal & Compliance
      • Non-Fungible Token (NFTs)
    • Investing
      • Markets
      • Financial Products
      • Decentralized Finance (DeFi)
      • Exchange overview
    • Education
      • Basics
      • Glossary
      • Politicians on crypto
    • Statistics
      • Bitcoin-ETF-Flows
      • Ethereum-ETF-Flows
      • Crypto market data
      • On-chain data
    • Academy
      • Overview
      • Part 1: Blockchain
      • Part 2: Money
      • Part 3: Bitcoin
      • Part 4: Cryptocurrencies
      • Part 5: Decentralized Finance
      • Part 6: Investing
    • English
      • Deutsch
    Crypto Valley Journal
    You are at:Home » Glossary » Layer

    Layer

    By Editorial Office CVJ.CH on 23. April 2020 Glossary

    Typically, blockchains are categorised into layers in the (DLT) decentralised ledger technology space. The layers form the basic structure of blockchain projects, depending on their functionality and setup. These layers are often designed to work together, forming a stack that collectively supports various aspects of blockchain operations.

    The concept of layers allows for modularisation and categorisation. It allows developers to focus on specific aspects of functionality without having to overhaul the entire system. Furthermore, the idea of layered architectures is fundamental to the development of scalable and flexible blockchain ecosystems.

    Types of blockchain layers

    Layer 0 is the foundation or infrastructure layer. This blockchain layer includes hardware, software and protocols. The primary function of Layer 0 is to serve as a solid foundation, providing connectivity solutions to facilitate the seamless operation of Layer 1 chains. Its role extends to enabling cross-chain interoperability.

    Layer 1 comprises the most widely known DLT blockchains. Its core functionality is to provide a distributed consensus process to ensure that transactions have occurred in a validated order. However, Layer 1s do not communicate well with one another, making it is difficult to send or bridge currency from one blockchain to another. The most successful under these are Ethereum (ETH) and Bitcoin (BTC). It is the base upon which dApps can be built.

    Layer 2's collate transactions and then use a layer 1 to provide consensus confirmation. They are dedicated scaling solutions designed to alleviate the transaction limitations associated with Layer 1 chains. Based on the security framework of Layer 1 chains, their purpose is to alleviate network congestion by aggregating transactions in 'batches'. Layer 2 services are centralised and therefore require considerable trust on the part of the user. For this reason, the main goal of these protocols is to solve the transaction speed and scaling problems faced by large cryptocurrency networks. Important examples of Layer 2 solutions are the Bitcoin Lightning Network, Ethereum Plasma or Polygon.

    Liquidity depth, custody controls, latency, capital efficiency and dedicated support decide which venues institutional traders actually approve. Background
    28. August 2026

    5 infrastructure requirements institutional traders demand from crypto venues

    Liquidity depth, custody controls, latency, capital efficiency and dedicated support decide which venues institutional traders actually approve.

    Cardano's DReps are 24 percentage points short before the deadline, while Solana's quorum rule contradicts its own governance framework. Background
    27. August 2026

    Cardano and Solana: The weaknesses of on-chain governance

    Cardano’s DReps are 24 percentage points short before the deadline, while Solana’s quorum rule contradicts its own governance framework.

    What separates Dogecoin from Bitcoin is its unlimited supply, and the 2013 satire coin now trades through its own US spot ETF.
    5. August 2026

    What is Dogecoin? From satire project to ETF asset

    Bitcoin overtakes gold in the US: per River's report, 49.6 million Americans own Bitcoin, while just 28.8 million still hold gold.
    22. July 2026

    Bitcoin overtakes gold among US investors for the first time

    Digital asset security faces a new gap: crypto losses topped USD 4.70 billion in 2025, up 63%, as fraud follows multi-asset users.
    22. July 2026

    Digital finance has gone multi-asset. Security needs to catch up.

    The Chainalysis Crypto Crime Report puts illicit activity below 1% of on-chain volume, countering the myth of Bitcoin as a criminal currency.
    21. July 2026

    Myth: Bitcoin and cryptocurrencies mainly serve criminal activity

    Falling qubit estimates bring the quantum computer threat to Bitcoin closer and spark a debate over freezing Satoshi's coins.
    20. July 2026

    Quantum computers put Bitcoin’s cryptography under pressure

    Most crypto cards hide who issues them. After mapping the licensed issuers, here is why Switzerland's self-issuing model reads differently.
    8. July 2026

    The bank you never chose: who really issues Switzerland’s crypto cards

    Popular Posts
    About Crypto Valley Journal
    About Crypto Valley Journal

    On the pulse of the movement

    • Academy
    • Contact
    • Advertising
    • About us
    • Partner
    • Imprint
    • Privacy
    • Disclaimer
    Search

    Type above and press Enter to search. Press Esc to cancel.