How does Layer Zero Blockchain function?
Layer Zero or Layer 0 blockchain operates through a blockchain development framework. This framework facilitates the creation of a peer-to-peer (P2P) communication network, forming the foundation for an initial blockchain. This blockchain can then be used to establish bridges or interoperability with other blockchains, like Bitcoin, or to create new blockchains using the same development framework, as seen in Polkadot parachains utilizing Substrate.
The P2P network handles communication between different parties, processes transactions, and validates them. Validated transactions are added to the underlying blockchain. The Zero Layer Blockchain employs a Proof of Stake (PoS) consensus mechanism, more efficient than Bitcoin and Ethereum's Proof of Work (PoW). Users validate transactions by staking tokens, with higher stakes increasing the likelihood of being selected for validation.
Utilizing fragmentation (sharding), the network is divided into smaller parts, allowing each shard to process transactions independently. This enhances the network's capacity to handle a larger volume of transactions. Show Less
