There are ways to scale up a layer 1 network. To resolve this problem, the network needs to scale, or else transactions will start falling off the edges, so to speak. As the user base grows, so does the need for more nodes to process transactions. Equally, the nodes in a layer 1 network can only process so many transactions before congestion occurs. If you try adding more slices than the stand cake takes, they will start falling off the edges and the mess will ruin someone's big day. Just as a cake stand can only fit a finite amount of slices, the base (the layer 1) can only process a certain amount of transactions. In other words, every tier scales the base layer up.ĭecentralized public networks face a similar problem. A new filling, frosting, decoration, etc. Every tier (think layer) adds something to the base. The stuff that rests on it can only be of a certain size, and this is exactly the reason why wedding cakes have multiple tiers. Equally, it needs to be big enough to support the tiers that sit above it. That first layer has certain dimensions and cannot be any bigger. It's big, isn't it, with all those tiers stacked on top of one another.
The consensus layer does not need to know the exact nature of the ledger state, nor the contents of the blocks, apart from some header fields required to run the consensus protocol.Īs a whole, these three layers form the layer 1 solution that is Cardano. The state transitions are driven by the set of transactions that are contained within the Cardano blocks, and by major events such as epoch boundary transitions. The ledger layer consists exclusively of pure functions that specify the transitions between successive ledger states, as derived from the formal ledger rules, using the Extended UTxO (EUTxO) accounting model. How the ledger must be updated for each new block.What the state of the ledger looks like and.Maintaining all the state that is required to make the decisions taken in the consensus layer.This layer takes decisions like adopting blocks, choosing between competing chains (if there are any), and deciding when to produce blocks of its own and Running the Ouroboros consensus protocol.This layer performs two fundamental functions: This layer maintains the connections between all the distributed nodes in the Cardano network, obtains new blocks from the network as they are produced by block producing nodes, builds newly minted transactions into blocks, and transmits blocks between nodes. With this visual schematic in mind, Cardano is the layer 1 (the base network), which itself includes three independent layers: In a blockchain, layer 1 is the base network upon which rest layer 2 solutions. You can probably see where this is going. For all intents and purposes, that robust and solid cake stand is the first layer (layer 1) that supports the cake infrastructure. That beautiful cake rests on a solid stand, the base. Imagine a wedding cake, with different tiers -layers, if you will-, and the figurine of a couple on top.
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