What is the difference between layer-1 and layer-2?

Layer-1 is the term used to describe the primary blockchain's underlying architecture. Layer-2, on the other hand, is a network that overlays the blockchain. Think about Bitcoin and the Lightning Network. The Bitcoin network is layer-1, while the lightning network is layer-2.

Is Ethereum a layer-1 or 2 blockchain?

Ethereum is a layer-1 blockchain because it is the foundation upon which layer-2 networks are constructed. Rollups on Ethereum and the Lightning Network built on Bitcoin are examples of layer-2 projects.

Is there a layer-3 blockchain?

Yes, layer-3 blockchains host decentralized applications (DApps) and associated protocols. They are known as the “Application layer.” APIs, UI, scripts, and smart contracts can all be included in the application layer.

What is a layer 0 blockchain?

Layer-0 blockchains provide the underlying infrastructure for chain creation as well as cross-chain interoperability. Chains built on top of layer-0 can communicate with one another or can become compatible other non-native blockchains. Layer-0 blockchains lay the groundwork for layer-1 blockchains. Examples of layer-0 Blockchains are Cosmos, Polkadot, and Avalanche. Cosmos serves as the foundation for the Binance Chain (BNB).