Layer-1 and Layer-2 Explained

You may be pretty well-versed in blockchain and cryptocurrencies, but perhaps new to the concept of Layer 2 scaling solutions, NFTs, and marketplaces! 

Layer-1

Layer-1 is the term we use to describe the underlying main blockchain that we're building on. In the case of Immutable X, and (by extension) Guild of Guardians, our Layer-1 is the base Ethereum blockchain network. 

Layer 1 on Ethereum is the foundation upon which higher-level applications and services are built, and is critical to the overall functionality and security of the Ethereum network.

Layer 1 on Ethereum includes the core Ethereum blockchain, as well as the Ethereum Virtual Machine (EVM), which is the runtime environment that allows smart contracts to be executed on the network. It also includes the Ethereum network's consensus mechanism, which is used to verify and validate transactions on the blockchain, as well as other key components and protocols.

Layer-2

Layer-2 is the term we use to describe secondary networks built on top of the main Layer-1 blockchain. Layer-2 protocols and technologies are designed to complement and extend the capabilities of the Ethereum network, without requiring changes to the underlying Layer-1 infrastructure.

Layer 2 technologies are seen as an important part of the ongoing development and evolution of the Ethereum platform, as they can help to address some of the scalability and performance challenges that the Ethereum network has faced.

How does this affect me?

The differences between Layer-1 and Layer-2 on Ethereum may not have a direct impact on most users of the Ethereum network, as the average user who is simply holding or using Ether or other assets on the Ethereum network may not engage in many interactions that have significant Layer-1 consequences.

However, the development and adoption of Layer-2 technologies can have important implications for the overall scalability, performance, and usability of the Ethereum network. For example, the use of Layer-2 technologies can help to reduce transaction fees, speed up transaction processing times, and enable the Ethereum network to handle more transactions per second, which can improve the overall user experience.

Additionally, the development of Layer-2 technologies can also help to attract more developers and users to the Ethereum platform, which can help to drive innovation and adoption of decentralized applications and other services built on Ethereum.