Understanding Web3 Layers: From the Foundation to Decentralized Apps
The article explains the layered architecture of Web3, which consists of four main layers: 1. **Layer 0**: The foundational layer that enables the creation and connection of multiple blockchains, facilitating cross-chain communication and interoperability. Examples include Polkadot and Cosmos. 2. **Layer 1**: The main blockchain layer where transactions are recorded and processed. It provides consensus and security but faces scalability challenges, leading to congestion and high fees. Examples include Ethereum and Bitcoin. 3. **Layer 2**: Built on top of Layer 1, Layer 2 solutions improve transaction speed and reduce costs by processing transactions off-chain before summarizing them back to Layer 1. Examples include Arbitrum and Polygon. 4. **Layer 3**: The application layer where users interact with Web3 through decentralized apps (dApps), games, and marketplaces. Examples include Uniswap and OpenSea. Understanding these layers is crucial for evaluating projects, enhancing user experience, and identifying opportunities in the Web3 space.