Architectural layers

Vincent Schaaf and Tobias Guggenberger

Chapter 2 in Elgar Encyclopedia of Cryptocurrencies, Blockchain and DLT, 2026, pp 10-14 from Edward Elgar Publishing

Abstract: This chapter explores the concept of multilayered blockchain systems, which address the challenges of decentralization, security, and scalability, also known as the blockchain trilemma. It introduces Layer 0, 1, and 2 blockchains and highlights how the different layers interact to balance trade-offs in the blockchain trilemma. Layer 1 blockchains, such as Bitcoin and Ethereum, serve as the foundation, prioritizing decentralization and security. Layer 0 focuses on blockchain interoperability, while Layer 2 enhances scalability. The chapter discusses the varied approaches within blockchain systems, emphasizing that blockchain is a multifaceted technology, adaptable to specific applications through the utilization of a multilayered structure.

Keywords: Blockchain; Rollup; Scalability; Decentralization; Security; Governance (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035339952
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