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Define the Layers of the Decentralized Economy stack in blockchain.

Define the Layers of the Decentralized Economy stack.

Asked On2022-06-10 13:46:13 by:suman

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Layer 1 Smart Contracting Platforms are the topic of this report. They set the rules for how networks are secured and how they come to agreement on the state of the blockchain(s). They span general-purpose blockchains such as Ethereum which provide a platform for launching applications deployed as smart contracts to Polkadot which resembles a “Layer 0” platform as it provides developers a security framework for deploying their own Layer 1 blockchains. Sidechains and Application-Specific Chains such as RSK, are blockchains with distinct consensus processes and security profiles from Layer 1s. Application-specific chains are one example of blockchains that are deployed under the development framework of a Layer 1 platform such as Cosmos, yet nonetheless have independent security models. Scalability solutions are typically referred to as Layer 2 solutions. They aim to enhance the performance of Layer 1 platforms by offloading transaction execution onto separate chains. They leverage the security frameworks of their underlying Layer 1s to varying degrees and when they rely heavily on their own security frameworks rather than those of their related Layer 1 platform, they qualify as sidechains. 

Answerd on:2022-06-23 Answerd By:Ashwini-Raddekar

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