Altchains: An Overview
Altchains refer to alternative blockchains, excluding Bitcoin and Ethereum. These blockchains aim to provide scalability, low transaction fees, and improved performance compared to Ethereum. Altchains have emerged as a response to the scaling challenges faced by Ethereum, which has high transaction fees and limited scalability.
Layer 0
Layer 0 refers to the protocol that enables layer 1 (L1) solutions to interact on the same network. The Polkadot network is an example of a layer 0 protocol. It allows L1 blockchains to build on top of it, providing a foundation for scalability and interoperability.
Layer 1
Layer 1 refers to the underlying main blockchain network, which includes Bitcoin, Ethereum, and Solana. These blockchains are examples of layer 1 blockchains.
Layer 2/Sidechains
Layer 2 (L2) refers to a third-party integration that works on top of a layer 1 blockchain to scale an application by processing transactions off the main blockchain while maintaining security and decentralization. Arbitrum is an example of an Ethereum L2 scaling solution.
Altcoins
Altcoins are cryptocurrencies other than Bitcoin, classified into several types: utility tokens, DeFi tokens, NFT tokens