I recently read an interesting article about blockchain architecture, and it turns out that this layer concept is more complex than I imagined. So here’s the deal, blockchain is like a multi-layer pyramid, and L1 is the main foundation that makes everything run.

If we break it down from the bottom, L0 is basically data transmission infrastructure—like couriers delivering packages from one place to another, but with encryption and a distributed system. There’s IPFS, Filecoin, and protocols like HTTPS that handle this part. Then there are standard tokens like ERC-20 and NFT standards (ERC-721/1155) included in this layer.

Now, what’s interesting is that L1 is the core layer of blockchain that handles on-chain expansion. It’s not just an upgrade, but a fundamental protocol that makes everything fast, secure, and affordable. Bitcoin and Ethereum are clearly L1 blockchains. They use PoW or PoS for consensus. There’s also BSC with a validator system of 50 using PoSA, and Avalanche with its own consensus mechanism. All of these focus on increasing throughput and processing power directly at the first layer.

This is very different from L2 solutions, which make transactions faster through off-chain methods. Lightning Network, Optimistic Rollup, ZkRollup—all of these take some transactions off the main chain and process them in sub-layers, making it lighter and quicker. Like a magic trick, shifting workload without changing the core rules.

Then at the very top, there’s L3, which is the application layer—DeFi, NFTs, DApps, all live here. This is what makes the blockchain experience diverse and engaging for users.

Actually, what we most often see in the market are L1 and L2 tokens. Many focus on the first-layer tokens or scaling solutions. If you want to explore further, you can check out $OP, $ARB, and $BNB in the market—all of which have different roles in this ecosystem.