When investing in various cryptocurrencies, it is easy to get caught up in market volatility and trends, however, some people, especially those who are new to cryptocurrencies, overlook the fact that purchasing a coin also entails purchasing the project it stands for.
An investor must be fully informed of his investment plan, just like with traditional investing.
Understanding how each project fits into the greater ecosystem is crucial, beyond the overarching messages it may deliver.
One of the simplest ways to begin categorizing various currencies is to use the layering principle (and, in turn, various companies).
It is possible that one may have heard of Blockchain Layers like 0, 1, 2, or even Layer 3 solutions.
However, what do these Layers signify?
Let's use an analogy to try and understand different blockchain Layers.
Layer 0
The foundation of a blockchain is offered by Layer 0 technology, which consists of hardware and software components, that may be used to build blockchains.
Think about nodes and anything else that is required to connect them and transfer data, such as mining equipment and protocols.
Continue reading: https://www.livemint.com/news/world/understanding-blockchain-layers-11663585834084.html
An investor must be fully informed of his investment plan, just like with traditional investing.
Understanding how each project fits into the greater ecosystem is crucial, beyond the overarching messages it may deliver.
One of the simplest ways to begin categorizing various currencies is to use the layering principle (and, in turn, various companies).
It is possible that one may have heard of Blockchain Layers like 0, 1, 2, or even Layer 3 solutions.
However, what do these Layers signify?
Let's use an analogy to try and understand different blockchain Layers.
Layer 0
The foundation of a blockchain is offered by Layer 0 technology, which consists of hardware and software components, that may be used to build blockchains.
Think about nodes and anything else that is required to connect them and transfer data, such as mining equipment and protocols.
Continue reading: https://www.livemint.com/news/world/understanding-blockchain-layers-11663585834084.html
