Understanding the basics of a blockchain is the building “block” of success in the crypto space.
As of 2021, US$6.6 billion has been spent on blockchain solutions. The technology not only underpins the global cryptocurrency market but also provides unique utility for other sectors, like healthcare, logistics and real estate.
A blockchain is a decentralized digital ledger made up of blocks that record data across a peer-to-peer (P2P) network. Once information is stored on this ledger, it becomes near impossible to delete, alter and hack. It is this unique characteristic of the blockchain that has inspired many to create their own blockchain-based businesses.
But before pondering over how you can utilize the blockchain in your business, it is important to understand how it works. Let’s take a look at the different layers of blockchain technology to make the most of what it has to offer.
Understanding the blockchain
When we talk about the layers of the blockchain, it is important to note that there are two ways to understand blockchain technology. The first way is to comprehend how blockchain architecture works. Blockchain technology consists of five layers—the hardware layer, the data layer, the network layer, the consensus layer and the application layer.
The second is the division of the blockchain network based on protocol. Protocol refers to the set of rules that govern a network. The blockchain protocol is made up of four layers—Layer 0, Layer 1, Layer 2 and Layer 3. Let’s take a look at each of these categories separately.
Continue reading: https://www.jumpstartmag.com/what-are-the-different-layers-of-blockchain-technology/
As of 2021, US$6.6 billion has been spent on blockchain solutions. The technology not only underpins the global cryptocurrency market but also provides unique utility for other sectors, like healthcare, logistics and real estate.
A blockchain is a decentralized digital ledger made up of blocks that record data across a peer-to-peer (P2P) network. Once information is stored on this ledger, it becomes near impossible to delete, alter and hack. It is this unique characteristic of the blockchain that has inspired many to create their own blockchain-based businesses.
But before pondering over how you can utilize the blockchain in your business, it is important to understand how it works. Let’s take a look at the different layers of blockchain technology to make the most of what it has to offer.
Understanding the blockchain
When we talk about the layers of the blockchain, it is important to note that there are two ways to understand blockchain technology. The first way is to comprehend how blockchain architecture works. Blockchain technology consists of five layers—the hardware layer, the data layer, the network layer, the consensus layer and the application layer.
The second is the division of the blockchain network based on protocol. Protocol refers to the set of rules that govern a network. The blockchain protocol is made up of four layers—Layer 0, Layer 1, Layer 2 and Layer 3. Let’s take a look at each of these categories separately.
Continue reading: https://www.jumpstartmag.com/what-are-the-different-layers-of-blockchain-technology/
