Skip to content
Gallery
Blockchain One Pager
Getting Started
important ppts
AMAs
More
Share
Explore

⬆️⬆️⬆️⬆️⬆️⬆️Click the categories above⬆️⬆️⬆️⬆️⬆️⬆️

Blockchain conceptual layers

From an architecture standpoint, blockchains can be divided into three conceptual layers:
Application: Responsible for updating the state given a set of transactions, i.e. processing transactions.
Networking: Responsible for the propagation of transactions and consensus-related messages.
Consensus: Enables nodes to agree on the current state of the system.
Bitcoin codebase was very monolithic; all three layers—networking, consensus and application — were mixed together.
Ethereum achieved this by turning the Application layer into a virtual machine called the Ethereum Virtual Machine (EVM). It process smart contracts which allowed thousands of developers to start building decentralized applications (dApps).

Limitation of Ethereum 1.0:

Limitation #1: Scalability

The first limitation is scaling - decentralized applications built on top of Ethereum are inhibited by a shared rate of 15 transactions per second. This is due to the fact that Ethereum still uses Proof-of-Work and that Ethereum dApps compete for the limited resources of a single blockchain.

Limitation #2: Usability

The second limitation is the relatively low flexibility granted to developers. Because the EVM is a sandbox that needs to accommodate all use cases【like coding with flutter】, it optimizes for the average use case. This means that developers have to make compromises on the design and efficiency of their application (for example, requiring use of the account model in a payments platform where a UTXO model may be preferred). Among other things, they are limited to a few programming languages and cannot implement automatic execution of code.

Limitation #3: Sovereignty

The third limitation is that each application is limited in sovereignty, because they all share the same underlying environment. Essentially, this creates two layers of governance: that of the application, and that of the underlying environment. The former is limited by the latter. If there is a bug in the application, nothing can be done about it without the approval of the governance of the Ethereum platform itself. If the application requires a new feature in the EVM, it again has to rely entirely on the governance of the Ethereum platform to accept it.

Want to print your doc?
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.