Understanding Layer 0

By Tokenize Xchange
June 21, 2023

Considered a fundamental layer for blockchain networks and applications, Layer 0 blockchains are one of the many solutions aimed at addressing industry challenges such as scalability and interoperability.

Learn more about Layer 0 with Tokenize Xchange, Asia’s Digital Currency Trading Platform.  


A blockchain ecosystem can be divided into different layers:

Layer 0: The foundational infrastructure for which Layer 1 blockchains can be built

Layer 1: The base blockchains used to develop applications

Layer 2: Scaling solutions that manage off-chain activities to ease transactional loads on Layer 1 blockchains

Layer 3: The blockchain-based application layer including games, wallets and DApps 


What is Layer 0 and why do we need them?

Layer 0 is a blockchain network’s underlying layer that allows seamless interaction with other protocols in order to establish a network of interconnected value chains. It solves the 3 main challenges faced for web3 development – Interoperability, Scalability and Flexibility.


Interoperability is the ability of blockchain networks to communicate with one another. With a Layer 0 protocol, it enables blockchain networks to interact with one another, without the need for bridges. 

By allowing the blockchain ecosystem to build on each other’s features and use cases, Layer 0 networks greatly improve transaction speeds and provide greater efficiency. This creates a tightly interwoven network of blockchains, which in turn, provides a better user experience.


Monolithic Layer 1 Blockchains such as Etheruem may get congested with overwhelming critical functions like transaction execution and consensus. This leads to scaling issues within the blockchain. 

A Layer 0 protocol can eliminate these problems and help blockchains scale by increasing transaction throughput. This allows the delegation of critical functions to different blockchains, relieving the Layer 1 network and improving scalability. 


Layer 0 protocols allow great flexibility as developers are able to customise their own blockchains by designing their own token issuance models, curating the type of DApps that are built on the network and controlling their own developer ecosystem. 

With the software development kits (SDKs) of Layer 0 protocols, the process of launching purpose-specific blockchains is significantly reduced, allowing developers to launch a blockchain with relatively little effort.

What are some popular Layer 0 networks?

There are several ways in which Layer 0 protocols operate, with varying structure, design and features. However, Layer 0 networks, ultimately, act as the main and underlying blockchain, backing up transaction data from Layer 1 blockchains. Here are some notable Layer 0 networks:


Avalanche is a DeFi-focused blockchain launched by Ava Labs in 2020. Its tri-blockchain infrastructure comprises three primary chains known as the Contract Chain (C-chain), Exchange Chain (X-chain), and Platform Chain (P-chain) that are specifically designed to handle various functions within the ecosystem. 

The goal is to improve security while achieving low latency and high throughput. The X-Chain is utilized to create and trade assets, the C-Chain to create smart contracts, and the P-Chain to coordinate validators and subnets. Furthermore, the flexible design of Avalanche enables fast and cost-effective cross-chain swaps.

>> Read more: Avalanche


Designed by Ethereum co-founder, Gavin Wood, Polkadot was designed to allow developers to build their own blockchains. The protocol unites and secures an entire ecosystem of specialised blockchains, known as “Parachains”. 

Parachains are connected together and secured by the Polkadot Relay Chain. Apps and services on Polkadot can securely communicate across chains, forming the basis for a truly interoperable decentralized web.

>> Read more: Polkadot 


Founded in 2014 by Ethan Buchman and Jae Kwon, Cosmos is a scalable and interoperable network of blockchains. 

Using the Cosmos Software Development Kit (SDK), developers can launch their own blockchains or ‘zones’. Each zone is customisable and allows developers to curate their own cryptocurrency. These Cosmos Zones are connected together by Hubs using the Inter-Blockchain Communication protocol (IBC). This enables data within to be openly accessed across independent blockchains.

>> Read more: Cosmos


How to buy AVAX/DOT/ATOM tokens?

Investors can easily buy these tokens from Digital Asset Exchange Platforms. Below are 5 steps to buy AVAX on Tokenize Xchange


Step 1: Select Trade on your dashboard. 


Step 2: Choose the market on the right of the dashboard

For example, click on SGD Markets tab, and under the tab, you will see AVAX/SGD


Step 3: Choose the type of Buying

3.1. Limit Buy

A limit order will be filled at or better than a specified price. Any quantity that is not filled rests on the continuous order book until it is filled or canceled.

Your Balance: SGD balance left in your account.

Price per AVAX: the price to buy for 1 AVAX in SGD.

Amount AVAX: Key in the amount of AVAX to buy.

Time In Force:

  • Good Till Cancelled (GTC): Your order will stay on the order book until they have been completely filled or until you manually cancel them.

3.2 Market Buy

A market order is an order that will be executed immediately and in full by buying or selling from the bids and asks in the order book.

Your Balance: SGD balance left in your account.

Market: Your order will be filled immediately at the best market price at the time of your order.

Amount: Key in the amount of AVAX to buy.

Sell: Once the Amount is filled correctly, you may click on Buy AVAX to confirm your Total Bid.

>> Read more: Market, Limit, and Stop Order: What is the difference?


Step 4: Confirm your order.

You will see a confirmation window. Check all details carefully. Please see the trading commission fee here. Click “Confirm” to proceed or “Cancel” to cancel the transaction.

For example: If you would like to buy 100 AVAX, you can select Market order, enter your quantity as 0.1 and confirm your order. You will then buy 100 AVAX from the market.

After confirming the order, you will see a green notification at the top of the page indicating that your order has been successfully placed.


Step 5: Finish the order

Your order will be matched automatically. You may view your order by selecting “Orders” and “Finished Orders”.

Under “Finished Orders”, you are able to view your completed orders.


How to cancel buy order

Click on “Pending Orders” to view all of your pending orders. 

Each order will show detailed information such as Date, Market, Side, Order Type, Price, Total Units, Amount, and Filled.

For orders that are still pending, you can click on “Cancel” to cancel your order.


This article has helped you answer the questions “What is Layer 0?”, “Why do we need Layer 0 networks?” and “What are some popular Layer 0 blockchains?” 

Head over to our Tokenize Xchange Academy to learn more, and don’t forget to follow Tokenize Xchange – Crypto Exchange Platform Singapore for more interesting blockchain articles! 



Cryptocurrencies are subjected to high market risk and volatility despite high growth potential. Users are strongly advised to do their research and invest at their own risk.