What are Blockchain Layers & How do they Work? | Shardeum

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What are Blockchain Layers and How Do They Work?

What are Blockchain Layers?

On a blockchain, due to the lack of a centralized controlling body, all transactions are strictly protected and data safely kept on a distributed ledger that everyone can access and verify. Such a distributed ledger system follows a predetermined protocol, requiring a “consensus” to be reached by numerous computers (or nodes) in the network to validate transactional data. Each node continuously adds, examines, and modifies new entries.

Blockchains offer this unique technique of transaction authentication through the use of a layered architecture. There are five stages of play, and each has its own set of responsibilities. The blockchain layers explained below.

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Each network participant in the dispersed network of a blockchain architecture layers maintains, approves, and updates new entries. The structure of blockchain architecture layers is represented by a set of blocks with transactions listed in a particular sequence. The blockchain architecture layers might be public, private, or consortiumbased.

The Layered Structure of Blockchain and Architecture

The following six levels make up layers of blockchain architecture:

1. Hardware Infrastructure Layer

A blockchain data can be stored on individual nodes or even on a server at a data center. A client-server architecture is essentially the model used when users browse the web or use any apps to request content or data from application servers. But a blockchain is a peer-to-peer computer network that computes, verifies, and orderly records transactions in a shared ledger. Clients can communicate directly with one another and exchange data. A vast network of computers that share data is referred to as a peer-to-peer network. As a result, all data, transactions, and other relevant data are stored in a distributed database.

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2. Data Layer

The data structure of a blockchain is described as an ordered linked list of blocks. Pointers and a linked list are the two main components of the blockchain’s data structure. Transactions are digitally signed to ensure the security and integrity of the data present in the layers of blockchain. Transactions are signed with a private key, and the signer can be verified by anybody who has a public key. The digital signature both checks for unity and identifies information modification. Since the data is encrypted with a specific, unique ‘hash’, it cannot be tampered with. The identity of the sender or owner is likewise shielded and not directly identifiable. A signature is therefore irrevocably connected to its owner and cannot be ignored.

The Layered Structure of Blockchain and Architecture

3. Network Layer

The network layer is where inter-node communication takes place. It is also known as the P2P layer or the propagation layer. This network layer manages block propagation, transactions, and discovery. A P2P network is a type of computer network where nodes are dispersed and share network workloads in order to accomplish a shared goal. This P2P layer ensures that nodes can connect to one another, communicate, share, and synchronize to maintain the integrity of the blockchain network. Nodes process transactions on the blockchain.

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4. Consensus Layer

The Layered Structure of Blockchain and Architecture

The consensus layer is essential for blockchain platforms to work. Whether it’s an Ethereum, Hyperledger, or other blockchains, the consensus layer is the most important and required layer. The blocks are ordered, validated, and guaranteed to be in the correct sequence by the consensus layer. A precise set of agreements between nodes are established by the consensus layer. It consists of rules that nodes follow in order to validate transactions and create blocks in accordance with those rules. No one has complete control over the blockchain because it keeps power decentralized and diffused. It has universal acknowledgment of the truth.

5. Application Layer

The application layer is made up of decentralized applications, smart contracts, and chain code. The application layer and the execution layer are further divisions of them. The application layer includes the software that consumers use to communicate with the blockchain network. It consists of application programming interfaces, frameworks, scripts, and user interfaces.

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