In a world of rapidly evolving blockchain technology, interoperability has become a key issue as different blockchain networks fail to communicate.
This has led to a lot of so-called blockchain tribalism. This has resulted in users being segregated behind different layers 1 blockchain into different segments, and creating separate ecosystems on each blockchain-with a lot of redundancy and copying.
Unfortunately, it also makes it harder for end-users to interact with the most useful decentralized applications and protocols, as they need to manage separate wallets for each chain they wish to interact with.
Enter the 0-tier blockchain, like Polkadot and Cosmos. By enabling cross-chain communication and interoperability, these technologies provide a solution to this problem and contribute to a more cohesive blockchain ecosystem.
What Is a Layer 0 Blockchain?
Layer 0s is a blockchain designed to facilitate the seamless exchange of data and / or value between otherwise independent blockchains-possibly including Tier 1 and layer-2 platforms.
Currently, most blockchains are isolated from each other. Because of the tribalisation of blockchain, everyone has their own ledger, their own smart contracts and, in many cases, their own user base.
Tier 0 changes the paradigm by ensuring that the applications and products they develop on one chain can communicate and interact with assets and users that exist on other chains, helping developers be more likely to collaborate than compete.
The way they do this varies widely between platforms, from well-established interoperability protocols like Polkadot\’s Substrate framework to modular solutions like Cosmos\’ Inter-Blockchain Communication (IBC) protocol (IBC).
As the blockchain space grows and matures, layer zero has the potential to play a crucial role in achieving seamless exchange of data and value across different blockchain networks.
How Do Layer 0s Work?
Today, the diversity of Tier 0 scenarios is incredible, with more than a dozen platforms vying to be the backbone of filling the blockchain void.
These are all designed to connect different blockchains into a more cohesive and interoperable ecosystem, making cross-chain communication simple and efficient. But different platforms, they attempt different ways.
In other words, most of these platforms use some common underlying technologies, principles, protocols and techniques.
Some of these include:
Atomic swaps: Layer 0 blockchains uses atomic exchanges to transfer assets from one chain to another without the need for a trusted intermediary.
Cross-chain data oracles: This enables blockchain to securely access and utilize reliable off-chain data and allows independent tiers one and two to access information from different chains. Platforms such as Chainlink also offer interoperability protocols such as the Cross-Chain Interoperability Protocol (CCIP) to help blockchains receive and exchange data from oracle nodes in a standardized way.
Arbitrary message passing: Almost all layer 0s have the function of passing random messages between chains, allowing seamless seamless data exchange between any and all chains in the L0 ecosystem. Some examples of arbitrary messaging techniques and protocols include Polkadot’s Cross-Consensus Message Format (XCM), Wanchain\’s Cross-Chain Communication Protocol (WCCC), and Cosmic SDK’s Inber-Blockchain Communication Protocol (IBC).
Shared consensus: By providing a single underlying consensus mechanism for all relevant chains, layer zero can significantly improve efficiency and maximize the utilization of available resources. This can also improve security by supporting a larger and more diverse network of verifiers, which some independent verifiers can only do with help.
Bridges: Most interoperability platforms utilize bridges that use a combination of smart contracts and APIs to facilitate communication between two or more chains and can be implemented in a variety of ways, including through centralized or decentralized mechanisms. Assets or data that move between chains can then be used for broader platforms and protocols.
Shared security: 0 blockchains provide shared security resources for connected chains, allowing them to start a network of nodes or miners and remain secure even if they are relatively small or inactive. By leasing a parachain slot, the subchain benefits from the central security provided by a verifier operating on the relay chain.
What Are the Most Prominent Layer 0s?
The layer 0 landscape is currently one of the most actively developed sectors in crypto right now, with developers doing what they can to maximize interoperability between sovereign chains and unlock new opportunities for users and builders.
Today, there are more than a dozen platforms with 0 levels of attributes. Some have had major success, while others remain relatively unknown. Many L1 blockchains are now linked by multiple L0s, meaning there is competition between platforms.
These technologies currently compete among different metrics, including interoperability features, security, communities and ecosystems, and adoption. While there are several platforms leading the way, there is no clear consensus on which L0s will dominate the industry in the future.
The two most popular platforms so far include:
Polkadot
By far the most well-known and arguably the most comprehensive layer 0 platform, Polkadot was funded in 2017 in one of the largest ICOs of all time.
Existing non-substrate-based blockchains such as Ethereum and Bitcoin can be integrated across bridges, allowing assets from these chains to be safely transferred to and returned to Polkadot.
Since the Relay Chain has limited resources, there are a limited number of parachain slots at first. To help ensure that only the most promising and useful projects occupy these slots. Polkadot uses a slot auction system where users and projects bid for a parachain lease.
Polkadot went live in May 2020 and dozens of projects have been built on the platform, several of which have been deployed as sub-high stars. This includes Moonbeam, Acala, Astar, Clover, and Parallel.
Cosmos
The second best known layer 0 platform, Cosmos, is designed to power an interconnected network of potentially thousands of blockchains that make up the Cosmos Network.
the Interblockchain Communication Protocol (ICP) is one of the main pillars of Cosmos, which is used for exchanging data and assets across blockchains within the Cosmos ecosystem. For sovereign blockchains to be consistent with IBC, they must be able to perform some minimal functions ̟ but there are no limitations on their network topology or consensus mechanisms.
Developers are able to use the Cosmos SDK to build their own chains and applications within the Cosmos ecosystem.
The core of this “Internet of Blockchains” is the Cosmos Hub. It used to be the flagship blockchain of the Cosmos Network and is designed to connect and interoperate with other blockchains of the network.
Similar to many layer 0 platforms, Cosmos uses a bridge and relay node system to migrate assets and data between chains, which allows it to be used across the Cosmos Network.
The Cosmos ecosystem also includes apps that help further smooth out the gaps between various appchains. These include Onomy, which includes connective tissue such as Access Wallet Ò that allows users to participate in staking and governance for all of their assets from a single interface, or connect with Cosmos ecosystem apps like Sommelier, Juno, Osmosis and Secret Network in one place.
The system also includes the Onomy Exchange that can be connected to any other channel through the Arc Bridge Hub and through the Cosmos IBC, with instances of the Hybrid Dex executing multiple channels. In other words, a single DEX has the inbuilt L0 infrastructure to collate liquidity across multiple chains and perform cross-chain swaps directly through the Onomy Exchange and Onomy Access portfolio.
