2A03:E600:100:0:0:0:0:13: /* Layer-2 */ added clarification

2019-01-31T11:20:59Z

Layer-2: added clarification

← Older revision		Revision as of 11:20, 31 January 2019
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	= [[Layer-2]] =		= [[Layer-2]] =
	Layer-2 sits on top of Layer-1. The Lightning Network is part of Layer-2. It provides the [[payment]] layer. This layer provides fast payment operations that are less permanent. Layer-2, i.e. the Lightning Network, uses the Layer-1 occasionally to settle the accumulated payments permanently.		Layer-2 sits on top of Layer-1. The Lightning Network is part of Layer-2. It provides the [[payment]] layer. This layer provides fast payment operations that are less permanent. Layer-2, i.e. the Lightning Network, uses the Layer-1 occasionally to settle the accumulated payments permanently. There might be other Layer-2 protocols in the future such as [[identity management]]. Lightning is one Layer-2 [[protocol]], but other Layer-2 protocols will be coming.

	= [[Layer-3]] =		= [[Layer-3]] =
	This layer is less well defined. It contains [[applications]] and could be called the [[application]] layer. Included in these applications are [[wallets]], [[custodial services]] like [[custodial]] wallets, [[exchanges]], [[micro-payment]] solutions. This layer also includes market-places, web sites and web services that build on top of Layer-2 and make use of Layer-2 APIs.		This layer is less well defined. It contains [[applications]] and could be called the [[application]] layer. Included in these applications are [[wallets]], [[custodial services]] like [[custodial]] wallets, [[exchanges]], [[micro-payment]] solutions. This layer also includes market-places, web sites and web services that build on top of Layer-2 and make use of Layer-2 APIs.

2A03:E600:100:0:0:0:0:13: created page

2019-01-31T11:17:26Z

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A [[layer]] is simply a group of functionality. The overall infrastructure is divided into layers to create abstraction, simplification and better, more well defined interfaces. The boundaries between the layers are not yet well defined, but as of 2019 one can identify the following 3 layers. There might be more layers created or subdivided in the future as the infrastructure is built out. This is ongoing work.

= [[Layer-1]] =
Layer-1 is the bottom layer providing the basis for everything. This can be seen as a [[settlement]] layer. This is implemented as a blockchain with its corresponding currency, e.g. the [[Bitcoin]] [[blockchain]] is a Layer-1 protocol. Same for Litecoin, etc. This is a layer with slow but very secure transactions that are absolutely permanent. This layer is the best defined layer.

= [[Layer-2]] =
Layer-2 sits on top of Layer-1. The Lightning Network is part of Layer-2. It provides the [[payment]] layer. This layer provides fast payment operations that are less permanent. Layer-2, i.e. the Lightning Network, uses the Layer-1 occasionally to settle the accumulated payments permanently.

= [[Layer-3]] =
This layer is less well defined. It contains [[applications]] and could be called the [[application]] layer. Included in these applications are [[wallets]], [[custodial services]] like [[custodial]] wallets, [[exchanges]], [[micro-payment]] solutions. This layer also includes market-places, web sites and web services that build on top of Layer-2 and make use of Layer-2 APIs.

Layers - Revision history

2A03:E600:100:0:0:0:0:13: /* Layer-2 */ added clarification

2A03:E600:100:0:0:0:0:13: created page