Hey everyone, I want to share about the blockchain structure that often causes confusion, especially regarding L0, L1, L2, and L3. This is really important for understanding how blockchain technology develops.

So, imagine blockchain as a pyramid—each layer has a different role. L0 is the most basic foundation. L1 is the main part that forms the backbone. L2 is the upper layer that adds features. Then L3 is the application we use directly every day.

Starting from the bottom, L0 is like a data transmission system. It handles the transmission of information between nodes in a blockchain network, using encryption and distributed storage to keep data secure. For example, IPFS and Filecoin— they protect data integrity and can enable cross-blockchain transactions.

Then there’s L1, the main protocol layer that forms the core of the blockchain system. L1 solutions directly upgrade blockchain performance at the protocol level. Bitcoin and Ethereum are classic examples of L1; they process transactions in different ways. Bitcoin uses PoW, which has strong security but is slower. Ethereum used to be PoW too, but now it has switched to PoS, which is more efficient. There’s also BSC, with 50 validators using PoSA, which can handle short block times and low fees. Avalanche is also an L1 focused on speed and scalability.

If L1 is about upgrading the basic protocol, then L2 is another way to scale. L2 is an off-chain solution that makes transactions faster without changing the core rules of the blockchain. Lightning Network uses state channels. Optimistic Rollup and ZkRollup batch transactions outside the main chain to make it lighter. The result is faster transactions and lower costs.

Now, L3 is the application we use directly. DeFi, NFTs, DApps—all of these are L3. They are built on top of L2 or L1 and provide a wide range of experiences for users.

In reality, each layer depends on the others. L0 handles data transmission. L1 is the backbone that processes transactions. L2 optimizes speed. Then L3 provides utility. That’s why it’s important to understand how everything works together.

Maybe I got something wrong in my explanation, but that’s the basic idea. If anyone wants to discuss further or correct me, please share in the comments. For those who want to explore more deeply, you can check out some projects like OP, ARB, and BNB on the exchange. Each has unique characteristics and use cases within the blockchain ecosystem.