Anyone who has been learning about blockchain or cryptocurrencies must have noticed how scalability is still a major issue for blockchain adoption. You can find many solutions to improve scalability on blockchain networks, especially with the big players like Ethereum. The curiosity regarding basics of Ethereum layers explained for beginners serves as a major driving factor for discovering solutions to scalability issues. Layer 1 and layer 2 protocols have emerged as the most prominent highlights in the blockchain landscape amidst the growing emphasis on scalability and interoperability.
You can understand the purpose of different layers of Ethereum blockchain by evaluating the components in blockchain architecture. Blockchain brings a combination of different technologies such as cryptography and decentralization to offer different types of applications. The conventional descriptions of blockchain paint it as a distributed ledger that is spread across a network of different nodes. It is important to dive deeper into the architecture of blockchain to understand that it includes multiple layers.
Build your identity as a certified blockchain expert with 101 Blockchains’ Blockchain Certifications designed to provide enhanced career prospects.
Understanding the Layers in Blockchain Architecture
The distributed nature of blockchain architecture involves multiple network participants maintaining, authorizing and updating new entries. You can think of Ethereum blockchain as a collection of blocks arranged in a sequence. The best way to understand any Ethereum layers project would involve learning about blockchain layers that work in unison. Let us learn more about the different layers in the architecture of a blockchain network.
Hardware Infrastructure Layer
The hardware infrastructure layer offers the physical setup required to run a blockchain. You have to store the content of a blockchain in a data center. Users can request data or content from the application servers through the client-server architecture while using apps or browsing the internet. The hardware infrastructure layer of Ethereum blockchain would enable clients to connect with their peers for data exchange.
Every blockchain works as a peer-to-peer or P2P network or a large network of computers sharing data with each other. The P2P network works on computation, validation and recording of transactions in a specific order within a shared ledger. In the hardware infrastructure layer, you would find a distributed database that stores all data and transactions.
Data Layer
The data structure of a blockchain is similar to a list of blocks linked to each other that stores transactions. You can find two important elements in the data structure of blockchain, the linked list and pointer. The linked list is a sequence of blocks chained to each other with a pointer to the previous block. Pointers are an important addition in discussions about layers in Ethereum, especially the data availability layer. Pointers show the position of another variable and play a crucial role in ensuring immutability of transactions on blockchain.
You can think of a Merkle tree as a binary tree of hashes. All blocks include the root hash of the Merkle tree alongside information such as the hash of the previous block, timestamp, block version number and nonce. Merkle tree offers immutability, security and integrity in almost all blockchain systems, including Ethereum. Digital signatures help in safeguarding the integrity and security of data contained in this layer of blockchain architecture.
It is impossible to discover data without authorized access due to encryption. Digital signatures help in protecting the identity of senders or owners and also ensure proactive detection of information manipulation. The digital signature on blockchain is legally associated with the owner, thereby preventing any concerns about disregarding the signature.
Learn about the basic concepts of Ethereum, such as transactions, addresses, consensus, blocks, and important tools with the Ethereum Technology Course.
Network Layer
The network layer is also an important component in the architecture of blockchains. Your search for answers to queries like ‘What is Layer 2 in Ethereum?’ can lead you to the network layer or P2P layer. It is an important requirement for communication between the nodes. The network layer also takes the responsibility for discovery, block propagation and transaction processing.
The P2P layer also ensures that nodes could discover each other and interact seamlessly. It helps the nodes in dissemination of information alongside synchronization to ensure updates in the blockchain state. The network layer is responsible for distribution of nodes and the way they share the workload of the network.
Consensus Layer
The consensus layer is an integral requirement for the working of blockchain platforms. It is the most important layer in any blockchain network and is responsible for validation of blocks. The consensus layer also ensures arrangement of the blocks in the right sequence while ensuring that everyone agrees to the state and order of transactions. Consensus layer helps in maintaining reliability by providing rules that nodes must follow for validating transactions.
Application Layer
The application layer of blockchain networks includes smart contracts, decentralized applications and chaincode. Application layer protocols include application and execution layers. The application layer includes programs that end-users can rely on for communication with blockchain network. You can also find user interfaces, scripts and application programming interfaces or APIs in the application layer.
The review of Ethereum layers list would suggest that the application layer helps in enhancing usability of the blockchain. As a matter of fact, the blockchain network itself empowers the application layer as a backend technology. Once the transaction shifts to the execution layer from the application layer, the semantic layer helps in validating and executing the transaction.
Discovering the Layers of Ethereum Architecture
The introduction to Ethereum layers can help you understand the ways in which different layers of Ethereum architecture contribute to its overall functionality. Ethereum is still encountering problems with usability, scalability and security. The layers of Ethereum architecture help in overcoming such challenges. Ethereum layers are the different levels in the Ethereum tech stack that offer security, functionality and scalability in the network and applications.
The layers serve an important purpose in the Ethereum ecosystem alongside working in unison to create an efficient blockchain network. You would find three distinct layers in the architecture of Ethereum, such as data availability layer, consensus layer and execution layer. The following sections will help you understand the functionalities of Ethereum layers and their importance.
-
Data Availability Layer
The data availability layer of Ethereum blockchain is responsible for ensuring availability of all transactions to users. It plays a major role in ensuring accessibility of transactions and data on Ethereum blockchain to empower all network participants for independent verification of transactions. Data availability layer is an important requirement for maintenance of transparency and auditability of the network. The assurance of data availability turns Ethereum blockchain into a decentralized and trustless system.
Data availability layer of Ethereum blockchain helps in documenting all the transactions on the network and important smart contract interactions. Any introduction to Ethereum layers explained for beginners would show that smart contracts help developers in creating dApps in the data availability layer. Decentralized apps are unique P2P software that have specialized applications and can empower different Ethereum functions such as NFTs, protocols and DeFi solutions.
The data availability layer offers easier access to the ledger that ensures immediate accessibility of all information on the blockchain. Data availability layer ensures that anyone can verify the current state of the Ethereum blockchain. It serves as a powerful tool for maintaining the integrity of Ethereum blockchain.
-
Consensus Layer
The consensus layer is an important component of blockchain architecture and an integral Ethereum layer. You can think of consensus layer as the platform on which the distributed network can collectively agree on the existing state of a blockchain. As the name implies, a consensus mechanism is the major element in a consensus layer. The consensus layer serves a strong foundation for blockchain networks by empowering all participants to determine which transactions could be a part of the next block.
Ethereum relies on the Proof of Stake consensus protocol and enables users to become a network validator by staking ETH. Validators can stake their ETH tokens for processing transactions and adding new blocks to the blockchain to safeguard network integrity and security. The other upgrades planned for the future of Ethereum can also enhance the consensus layer alongside enhancing throughput and scalability.
-
Execution Layer
The execution layer in the Ethereum architecture helps in managing the execution of smart contracts and all transactions on the blockchain. It works by taking instructions from the different transactions and smart contract interactions. The core of the execution layer of Ethereum features the Ethereum Virtual Machine or EVM. The EVM helps in processing code of smart contracts to create dApps on Ethereum blockchain.
Enroll now in the Ethers.js Blockchain Developer Course to develop an in-depth understanding of smart contracts and their uses for creating secure and efficient Ethereum transactions.
Final Words
The introduction to layers in Ethereum shows that they are different components in the Ethereum architecture. Ethereum layers serve a crucial role in addressing problems with scalability, functionality and security of the network. The layers work in unison to empower the Ethereum blockchain for advanced applications in the future.
One of the significant reasons to learn about Ethereum layers is the assurance of better scalability and interoperability. As the research on blockchain networks continues developing, it is important to pay attention to layers in blockchain architecture. Learn more about Ethereum blockchain architecture and find out the functionalities of different layers of Ethereum blockchain now.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!
