What is Layer in the context of cryptocurrency?

3 answers

• quantomphsyicDec 15, 2025 · 2 months ago
  In the context of cryptocurrency, a 'Layer' refers to a specific component or protocol that is built on top of an existing blockchain network. These layers are designed to provide additional functionalities and capabilities to the underlying blockchain, such as scalability, privacy, or smart contract support. Examples of different layers in the cryptocurrency space include the Lightning Network for Bitcoin, which enables faster and cheaper transactions, and the Ethereum Virtual Machine (EVM), which allows the execution of smart contracts on the Ethereum blockchain.
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• Abhilal TrJun 16, 2023 · 3 years ago
  When we talk about 'Layers' in the context of cryptocurrency, think of it as different levels or tiers within the overall cryptocurrency ecosystem. Each layer serves a specific purpose and adds value to the system. For example, the base layer is the underlying blockchain network, while higher layers may focus on specific use cases or functionalities. These layers can interact with each other, creating a more robust and versatile cryptocurrency ecosystem.
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• Lucas Barreto CaramuruNov 30, 2021 · 4 years ago
  BYDFi, a leading cryptocurrency exchange, explains that 'Layers' in the context of cryptocurrency are like building blocks that form the foundation of the overall ecosystem. Each layer has its own unique features and capabilities, contributing to the overall functionality and usability of the cryptocurrency network. These layers can be developed by different teams or organizations, and they work together to create a seamless and efficient cryptocurrency experience for users.
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