Layer 0 protocols, also known as a relay chains, are the ground floor layers among all blockchains which connect seamlessly to all other protocols to build interconnected networks able to transfer data and cryptocurrencies. Layer 0 protocols can be utilized in a variety of ways including data validation, reward structures, cryptocurrency wrapping and more. This allows cross-chain interoperability with all Layer 1 protocols such as Bitcoin, Ethereum, Cherry Network and many more.
A Layer 0 protocol acts similarly to a cryptocurrency bridge in that they allow for the transfer of non-native cryptocurrencies onto a different blockchain. This enhances the interoperability of the blockchain while also improving its ability to scale. Layer-0 blockchain protocols are highly versatile and simultaneously compatible with not only layer-1 blockchain solutions, but also the more focused layer-2 scaling solutions that are currently proliferating the blockchain space.
Innovative layer-0 blockchain protocols employ a decentralized network of independent parallel blockchains to create an entire ecosystem of networks with efficient cross-chain interoperability. They seamlessly work with existing layer-1 blockchain protocols while providing developers with a higher degree of flexibility in making design decisions. Offering the ability to broaden the number of blockchain use cases by integrating customized parachains (blockchains that run parallel to one another connected to a layer 0), layer-0 blockchain solutions can considerably improve scalability without sacrificing decentralization or requiring lengthy development cycles.
