What Are Layer-0 Protocols? Infrastructure for Customised Blockchains | Crypto.com (2024)

Layer-0 protocols are the infrastructure that customised Layer-1 blockchains are built on. We explore notable projects like Cosmos, Polkadot, and Avalanche.

Aug 07, 2023

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What Are Layer-0 Protocols? Infrastructure for Customised Blockchains | Crypto.com (1)

Key Takeaways:

  • Layer-0 protocols form the foundation that Layer-1 blockchains are constructed on.
  • Layer-0 protocols enable developers to launch customised Layer-1 blockchains designed for specific applications or use cases.
  • A mainchain supports the data transfer between Layer-1s, while sidechains are application-specific Layer-1s connected to the mainchain.
  • Cosmos, Polkadot, and Avalanche are prominent examples of Layer-0 networks that currently use the relay/sidechain structure, while newcomers like LayerZero and zkLink represent the next progression of multichain interoperability.
  • In the coming years, Layer-0 protocols have the potential to usher in a new wave of blockchain innovation by enabling the growth of multiple specialised Layer-1 blockchains that interoperate seamlessly.

What Are Layer-0 Protocols on a Blockchain?

What Are Layer-0 Protocols? Infrastructure for Customised Blockchains | Crypto.com (2)

Layer-0 protocols form the foundation that Layer-1 blockchains are constructed on. Serving as infrastructure for blockchain networks and applications, they represent one solution striving to tackle issues confronting the industry, including scalability and enabling interoperability between blockchains.

Layer-0 protocols enable developers to launch customised Layer-1 blockchains designed for specific applications or use cases. With the support of Layer-0s, developers can focus on applications instead of consensus and security.

With the aim to allow Layer-1 blockchains to communicate and interoperate, Layer-0 protocols provide users with a seamless experience across multiple networks. Without interoperability solutions provided by Layer-0 networks, individual blockchains would largely operate in isolation. This limits their utility and hinders the networking effects that arise when systems cannot communicate and interact with each other.

How Does Layer-0 Work?

What Are Layer-0 Protocols? Infrastructure for Customised Blockchains | Crypto.com (3)

A number of notable Layer-0 protocols adopt the relay-/sidechain-based infrastructure. This mainly constitutes three components:

  • A mainchain supports the data transfer between Layer-1s.
  • Sidechains are application-specific Layer-1s connected to the mainchain.
  • The interchain communication protocol acts as a standard for data exchange amongst the Layer-1s.

Examples of Relay/Sidechain Network

What Are Layer-0 Protocols? Infrastructure for Customised Blockchains | Crypto.com (4)

Currently, Cosmos, Polkadot, and Avalanche are prominent examples of Layer-0 networks that use the relay/sidechain structure. Newcomers like LayerZero and zkLink represent the next progression of multichain interoperability.

Read our exclusive report Layer-0: Deep Dive Into Interoperability Solutions to explore Layer-0 and blockchain interoperability in greater detail. Become a Crypto.com Private member and get access to the report today.

What Does the Future Look Like for Layer-0 Protocols?

In the coming years, Layer-0 protocols have the potential to usher in a new wave of blockchain innovation by enabling the growth of multiple specialised Layer-1 blockchains that seamlessly interoperate. Several technical and adoption challenges still remain, but Layer-0 could lay the foundation for a more open, productive, and composable blockchain ecosystem.

Further Reading

Read the full report by the Crypto.com Research & Insights Team: Layer-0: Infrastructure for Customised Blockchains.

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What Are Layer-0 Protocols? Infrastructure for Customised Blockchains | Crypto.com (2024)

FAQs

What Are Layer-0 Protocols? Infrastructure for Customised Blockchains | Crypto.com? ›

Layer-0 protocols enable developers to launch customised Layer-1 blockchains designed for specific applications or use cases. A mainchain supports the data transfer between Layer-1s, while sidechains are application-specific Layer-1s connected to the mainchain.

What are layer 0 protocols? ›

Layer 0 protocols allow blockchains to communicate better, so they can synergize and use each others' dApp ecosystem. The value of Layer 0 is cross-chain interoperability protocols (CCIP). Interoperable blockchains can seamlessly transfer information and tokens that aren't necessarily compatible.

What is a list of layer 0 blockchain? ›

Top Layer 0 (L0) Coins Today By Market Cap
#NameMarket Cap
1Polkadot ( DOT )$5.96B
2LayerZero ( ZRO )$390.72M
3GEEQ ( GEEQ )$2.48M

What is layer 0 in networking? ›

LayerZero, the "Foundation Layer", provides the critical infrastructure that supports the physical layer, ensuring uninterrupted power delivery to critical equipment.

Is cosmos a layer 0 blockchain? ›

Cosmos is one of the popular layer 0 blockchain examples for understanding how layer 0 empowers interoperability. Cosmos utilizes the Inter-Blockchain Communication or IBC protocol for classifying layer 1 networks as 'zones.

What is layer 0, Layer 1, and Layer 2 in blockchain? ›

While both layers aim to improve the blockchain experience, their approaches differ. Layer 1 offers security and decentralization at the potential expense of speed and scalability. In contrast, Layer 2 provides agility and reduced costs, often relying on Layer 1 for security.

What are the benefits of layer 0 blockchain? ›

One of the main benefits of Layer 0 is its ability to facilitate interoperability between blockchains. In other words, blockchains built on the same Layer 0 protocol can interact seamlessly without the need for dedicated bridges.

What are the 4 layers of the blockchain? ›

Primarily, blockchain consists of 5 layers: hardware infrastructure layer, data layer, network layer, consensus layer, and application layer. Each layer has unique functionality.

What is layer zero listing? ›

LayerZero is a technology that enables applications to move data across blockchains, uniquely supporting censorship-resistant messages and permissionless development through immutable smart contracts.

What are zero knowledge proofs and protocols in blockchain? ›

An increasingly common way privacy is achieved on public blockchain networks is through zero-knowledge proofs (ZKPs)—a method for one party to cryptographically prove to another that they possess knowledge about a piece of information without revealing the actual underlying information.

What is the layer 0 architecture? ›

Layer 0 refers to the foundational layer of a blockchain network, the first layer of all blockchain protocols, seamlessly integrating all other protocols to construct interconnected value chains and providing a more robust and evolved alternative to smart contracts.

What is a 0 network? ›

Zero configuration networking allows you to automatically create a network of devices without having to manually configure a DHCP server, DNS services, or network settings for each device that you want to connect to that network.

What is ethereums layer 0? ›

It's the core layer where the primary functions of the blockchain occur. Key Functions: Security: Ensures the integrity and immutability of transactions. Consensus Mechanisms: Such as Proof of Work (Bitcoin) or Proof of Stake (Ethereum 2.0), which are methods used to agree on the legitimacy of transactions.

What are the layer 0 protocols? ›

Layer-0 protocols are the foundational infrastructure upon which Layer-1 blockchains are built. They aim to address the challenges of scalability, interoperability, and developer flexibility in the blockchain industry. Notable examples of Layer-0 networks include Cosmos, Polkadot, and Avalanche.

What is the best layer 0 crypto? ›

If you want to use a layer 0 blockchain with their native coin on a suitable crypto casino, then Polkadot (DOT) is the best alternative. You can use it on sites such as Bizzo and CoinPlay.

Is Bitcoin a layer 0? ›

Layer zero blockchain is the initial stage of blockchain that allows various networks to function, such as Bitcoin, Ethereum, and many more. Layer 0 also provides blockchain with a facility of cross-chain interoperability communication from top to different layers.

Is layer 0 better than Layer 1? ›

Layer 1 blockchain is an advancement in layer 0. Under this layer, the blockchain network is maintained functionally. However, scaling is a limitation in the layer one blockchain. Any changes and issues arising in the new protocol in layer 0 will also affect layer 1.

Is Ethereum Layer 1 or 0? ›

Ethereum's main network, or Layer 1, is the Ethereum blockchain's base layer, where all transactions are settled. It is highly secure, thoroughly battle-tested, decentralized, and arguably the most trusted blockchain outside of Bitcoin.

What is the OSI model level 0? ›

If you are working in transport networking, you already know that Layer 0 is the photonics layer, more specifically, DWDM is considered as the Layer 0 of the OSI layers. DWDM – Dense Wavelength Division Multiplexing is an Optical Transmission technology.

What are the 4 protocol layers? ›

Network layering
  • Application layer. - encodes/decodes the message in a form that is understood by the sender and the recipient.
  • Transport layer. - breaks down the message into small chunks (packets). ...
  • Network layer. - adds the sender's IP address. ...
  • Link layer. - enables the transfer of packets between nodes.

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