Blockchain Layers / Blockchain Types and Features

blockchain layer Passing layer layer blockchain blockchain layer 1 2 3 blockchain layers layer 3 blockchain

 

 

 

In this article, we will introduce the layer structure of the blockchain and the types, features, and technologies of the blockchain. This blockchain layer article summarizes the basic knowledge of blockchain, like a lecture in software engineering. Keeping this in mind as a classroom knowledge should be useful for future cryptocurrency trading and NFT games. It’s hard to read to the end, but once you’ve learned the basics, it should help you in future blockchain-related news.

 

0. Blockchain technology is made up of virtualization technology

As you can see from the Layer 1 blockchain section, blockchain networks are built on virtualization technologies that we are familiar with. It virtualizes servers, networks, and storage, and each layer is based on it. Peer-to-Peer is a single virtualization server, which has the same mechanism as the rental server you usually rent. The Peer-to-Peer network connects the virtualization server and the virtualization server with a network. Blockchain technology can be said to be a combination of virtualization technology.

On top of the first layer 1 virtualization server, each data, consensus, and application is installed in a group called the blockchain layer. Until now, each client (computer) accessed a large server and ran the application.

However, in a blockchain network, each client is infinitely virtualized by virtualization technology. One of them is the block, which is the blockchain itself that we are accessing (accessing the blockchain network requires programming, web browsing (web apps), and running apps (dApps)). The cryptocurrencies and NFTs we own are also stored with the certificate in that one block.

blockchain layer
blockchain layer

 

Table of Contents

1. What is Blockchain?

2. What is Blockchain Layer?

 2.1 Application Layer ( Layer 5 )

  2.1.1 What is the Difference Beetween dApps and dApp?

 2.2 Consensus Layer ( Layer 4 )

 2.3 Network Layer ( Layer 3 )

 2.4 Data Layer ( Layer 2 )

 2.5 Hardware Infrastructure Layer ( Layer 1 )

3.Types and Characteristics of Blockchain

 3.1 Public Blockchain

 3.2 Private Blockchain

 3.3 Consortium Blockchain

4. Summary

 

 

 

1. What is Blockchain? ( blockchain layer )

blockchain layer
blockchain layer

A blockchain stores records of transactions that occur on a network in chunks of records called “blocks.” In addition to the transaction record, each block stores information called a hash value that indicates the contents of the previous block (* 1). The data structure in which the generated blocks are connected like a chain in chronological order is exactly the reason why it is called a blockchain.

When the blockchain tries to tamper with the information of a block generated in the past, the hash value calculated from the changed block is different from the previous block, so the hash value of all subsequent blocks must also be changed. However, such changes are virtually difficult. In this way, a major feature of blockchain is that it has a data structure that is highly resistant to tampering.

 

* 1 What is a hash value?

A hash value is data that compactly summarizes a certain amount of information calculated by an algorithm (hash calculation). If the information changes even a little, the hash value calculated will be a completely different value.

 

 

2. What is Blockchain Layer? ( blockchain layer )

blockchain layer
blockchain layer

This section describes the blockchain’s hierarchical architecture. This section also describes Ethereum and Hyperledger Fabric. Layer 1 blockchain in particular is often mentioned in articles related to NFTs and cryptocurrencies. Therefore, if you have a better understanding of Layer 1 blockchain, it will be easier to get the news.

 

2.1 Application Layer : Layer 5 ( blockchain layer )

blockchain layer
blockchain layer

The application layer (Layer 5) consists of smart contracts, chaincodes, and dApps. The application layer can be divided into two sublayers, the application layer and the execution layer.

At the application layer, there are applications that end users use to interact with the blockchain network. It consists of scripts, APIs, user interfaces and frameworks. For these applications, the blockchain network is the back-end system and often connects to the blockchain network via APIs.

The execution layer is a sublayer consisting of smart contracts, underlying rules, and chaincode. This sublayer has the actual code to be executed and the rules to be executed. Transactions propagate from the application layer to the execution layer, but transactions are validated and executed in the semantic layer (smart contracts and rules).

 

Layer 5 ( Application Layer )
Sub Layer ( Application Layer ) Sub Layer ( Execution Layer )
dApp ( Web Applicaton ) Smart Contract (Distributed app dApps Games, etc..) Chain Code

* Oracle is an agent that safely provides values ​​to Oracle smart contracts.

2.1.1 What is the Difference Between dApps and dApp?

blockchain layer
blockchain layer

* DApps is a decentralized application that runs on decentralized technologies such as Blockchain such as Ethereum, Bitcoin, and Hyperledger Fabric. This is a decentralized application that leverages smart contracts or chaincode.

* DApp can be regarded as a web application that interacts with smart contracts or chain codes. However, dApps are not controlled by a single entity or organization. When deployed, they belong to the blockchain network. dApp is a user-friendly application that business users can use to send transactions to the blockchain network.

You can use smart contracts to connect to blockchains, while dApps can use smart contracts or chaincodes. For example, when you access LinkedIn, the web page calls the API, which collects data from the database.

However, in the world of dApps and smart contracts, dApps are API-based web applications that connect to smart contracts and the smart contracts execute transactions in the ledger. Some examples of dApps are financial applications such as invoice factoring and KYC.

 

2.2 Consensus Layer ( Layer 4 )( blockchain layer )

blockchain layer
blockchain layer

The consensus layer is at the core of the existence of the blockchain platform. Consensus is consensus within the group, and behind every blockchain is a consensus algorithm. The consensus layer is the most important layer for the blockchain (Bitcoin, Ethereum, Hyperledger, or any other). Consensus is responsible for verifying blocks, ordering blocks, and ensuring everyone’s consent.

 

Consensus Algorithm Comparison Table

Fact

PoW

PoS

PBFT( Allowed Blockchain 
Blockchain Type

Unauthorized

Unauthorized and Permitted

Permmision

Transaction Finality (Completed State that Cannot be Changed)

Probabilistic

Probabilistic

Deterministic

Do you Need a Token

Yes Yes No

Example of use

Bitcoin, Ethereum Ethereum

Hyperledger Fabric * 1 (Example: IBM Food Trust Food Logistics Verification)

* 1 Hyperledger Fabric is an Open Source Platform for Business.

 

2.3 Network Layer ( Layer 3 ) ( blockchain layer )

blockchain layer
blockchain layer

The network layer, also known as the P2P layer, is the layer responsible for inter-node communication. It handles discovery, transactions, and block propagation.

This layer is also known as the propagation layer. This P2P layer allows nodes to discover, communicate, propagate, and synchronize with each other to maintain a valid current state of the blockchain network.

In a P2P network, computers (nodes) are distributed and share the network workload. Nodes execute transactions on the blockchain. There are two types of nodes: full nodes and light nodes.

 

2.4 Data Layer ( Layer 2 )( blockchain layer )

blockchain layer
blockchain layer

In the blockchain, transactions are placed in blocks and placed in a P2P network. This is a distributed, large-scale replicated database (distributed ledger). The current state of all accounts is stored in such a database.

A network (public or private) is made up of many nodes and data cannot be modified without a common consensus. The blockchain data structure can be represented as a linked list of blocks in which transactions are ordered.

The blockchain data structure contains two main components: pointers and linked lists. A pointer is a variable that points to the location of another variable. A linked list is a list of chain blocks, where each block has data and a pointer to the previous block.

 

2.5 Hardware / Infrastructure Layer ( Layer 1 ) ( blockchain layer )

blockchain layer
blockchain layer

Blockchain content is hosted on a server in the data center. The client requests content or data from the application server (commonly referred to as the client-server architecture) while browsing the web or using any application.

However, clients can now also connect with peer clients and share data with each other. Such large computers that share data with each other are called P2P networks. This is a two-way communication that is different from traditional client-server systems.

A blockchain is a computer’s P2P network that computes, validates, and stores transactions in an ordered format in a shared ledger. This creates a distributed database that records all data, transactions, and other relevant information.

P2P (peer-to-peer) is an autonomous decentralized network model in which each peer holds data and provides, requests, and accesses data to other peers on an equal footing. It is not fixed in the position of. Today’s various subscription services have a fixed server or client position.

Each computer in a P2P network is called a node. Nodes are responsible for verifying transactions, organizing blocks, broadcasting to blockchain networks, and more. When consensus is reached, the node commits the block to the blockchain network and updates a copy of the local ledger.

This layer consists of virtualization (creating virtual resources such as storage, networks, and servers). The important thing is that the node is the core of this layer. When a device is connected to a blockchain network, it is called a node and is considered a node. In the blockchain network, these nodes are decentralized.

 

 

3. Types and Characteristics of Blockchain

blockchain layer
blockchain layer

Blockchain technology is beginning to be used not only in the cryptocurrency world, but also in various industries. In addition to the “public blockchain” that was born as the core technology of Bitcoin, models such as “private blockchain” and “consortium blockchain” have appeared in the blockchain. We will explain these differences, the types and characteristics of blockchain.

 

3.1 Public blockchain

blockchain layer
blockchain layer

Public blockchain is an unmanaged blockchain that allows anyone with an internet connection to participate in transactions without permission. This is the basic model of blockchain, and many virtual currencies such as Bitcoin, Ethereum, Litecoin, and Solana are of this type. The allowed blockchain is Hyperledger Fabric.

Unauthorized Network

Allowed Networks

Bitcoin Blockchain
Ethereum Blockchain
Hyperledger Fabric

 

 

3.2 Private Blockchain

blockchain layer
blockchain layer

A private blockchain is a blockchain that can only be used by a limited number of users with a specific administrator (operator). Private types are centralized networks and are not exposed to the outside world, ensuring privacy and allowing data to be stored on the blockchain within a closed system.

And since there is no need to reach consensus among an unspecified number of nodes and no mining is performed, even if a large amount of processing is required, it can be processed quickly. On the other hand, the administrator can change the rules at his discretion, and if the administrator encounters a problem or failure, the system may not work.

Due to these characteristics, the private type is said to be suitable for use within a single company or organization, and is especially promoted by financial institutions.

 

3.3 Consortium Blockchain

blockchain layer
blockchain layer

A consortium-type blockchain is a blockchain with multiple management bodies. The consortium type is a model that combines the excellent characteristics of public type decentralization with the functions that enable rapid mass processing of private type.

Due to the multiple administrators, changing rules requires more than a certain number of consensus, and security is stronger than the private type. It also inherits the advantages of public types such as tamper resistance (hard to be tampered with from the outside) and distributed ledger.

As a result, consortium-type blockchains are beginning to be used in blockchains built in collaboration with other companies in the same industry. There are also virtual currencies operated by consortium type.

 

 

4. Summary ( blockchain layer )

blockchain layer
blockchain layer

So far, we have summarized the layers of the blockchain and the features of the blockchain. Development by the Ethereum blockchain has progressed, and transactions such as NFT games and NFT art are currently active. Various apps should be implemented on the Ethereum blockchain in the future.

Bitcoin, on the other hand, on the same public chain should increasingly establish itself as digital gold. No one knows if the prices of Bitcoin and Ethereum cryptocurrencies will go up or down, but public blockchain development will continue, including hyperleisure. Similarly, financial institutions will continue to develop private blockchains.

If you generally understand what is written in this article, you should be able to understand the blockchain-related news articles currently being distributed without difficulty. We hope this article will help you in your future activities on the blockchain.

 

 

Supplement: [Frequently appearing blockchain terms]

* PoW (Proof of Work) supports a mechanism in which a person who succeeds in the required calculation by mining approves the data and writes a new block to the blockchain.

* PoS (Proof of Stake) Proof of Stake was proposed as an alternative to PoW in the early days of Bitcoin to solve the PoW problem. PoS determines the block approval rate based on the amount of crypto assets held, rather than the enormous power-consuming calculations of PoW.

Miners who have succeeded in mining once adjust the ease of mining by lowering the approval rate. However, it has been pointed out that it is easier for people with many assets to approve the block, so it is easier for some people to focus on it.

This may mean that the rich become richer. To prevent this, PoS follows randomization. In other words, check the centralized part. PoS has been adopted in Ethereum 2.0 etc. and is already used in some crypto assets.

 

 

Reference URL:

https://blog.ethereum.org/2014/12/31/silos/

https://baasinfo.net/?p=3613

https://hedge.guide/feature/nft-technology-bc202109.html

https://www.fisco.co.jp/media/crypto/dapps-game-about/

https://subscription.packtpub.com/book/data/9781789804164/1/ch01lvl1sec07/layered-structure-of-the-blockchain-architecture

https://bitcoin.dmm.com/column/0196

https://mvno.freebit.com/column/iot-m2m/blockchain-type.html

hideyuki001
  • ITやガジェットなどをメインに記事を書いています。ご相談は、メールまでお願いします。Tokyo Web Writer | hideyuki001

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