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We have you covered. This secondary chain, or layer two, then takes care of some of the processing, taking load away from the layer one blockchain.
The Lightning Network is a second layer solution in that it uses Bitcoin on a separate chain which is designed to process lots of small payments very quickly.
When you join the LN you move some Bitcoin to it, and use that to transact with. When you leave the LN your Bitcoin is sent back to the layer one chain and is verified in the usual manner.
I propose that a third and final layer completes this model of a blockchain ecosystem. This, layer three, would contain dApps.
Indeed, this layer itself could be abstracted to further layers depending on a given dApp and how it interacts with all the previous layers.
Of course, this is an intentionally simple and non-technical perspective on blockchain as a series of layers. However, it should highlight to everyone, in someway, how different aspects of the blockchain should be thought of.
Change something in one layer and there may be knock-on consequences in the layer above or below. This model of layers also does not consider things like wallets or exchanges; vital tools required for a successful blockchain and cryptocurrency ecosystem.
However, these things do not always exist on a blockchain in their own right. Rather, they serve to interact with the blockchain, and permeate through all of its layers.
As the technology is adopted and developed further, there is the possibility that more layers will be created. Blockchain is a pretty abstract concept on the best of days, hopefully thinking of it as a series of layers, makes it a little less so.
Published January 24, — January 24, — The inventor of the hashtag is speaking at TNW! Blockchain, cryptocurrencies, and insider stories by TNW.
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