A Comprehensive Analysis of the Blockchain Foundation Layer: Definition, Classification, and Three-Stage Development Process

Exploring the Blockchain Base Layer: Definition, Classification, and Development History

The foundational layer of blockchain technology refers to independently operating blockchain platforms that utilize their own distributed node networks for data storage, verification, transmission, and interaction. These platforms have characteristics such as immutability, openness, decentralization, anonymity, and autonomy.

From a macro perspective, blockchain projects can be classified into two main categories: "token(" and "coin)". Understanding whether a project is a coin or a token allows one to determine whether it belongs to the foundational layer projects.

All "native coins" in the underlying blockchain can be referred to as coins. For projects that establish their own underlying blockchain, the coins they issue belong to coins and have the nature of "native coins". Tokens are the tokens issued by blockchain applications developed on the underlying blockchain, such as decentralized applications, smart contracts, etc. (, and have certificate properties.

Many projects will initially raise funds through white papers, and the issued tokens serve only as temporary vouchers. After the project is on the Blockchain, a conversion of tokens and coins will take place, and theoretically, the project team should retrieve all tokens and cease their use.

The development of the underlying blockchain can be divided into three stages:

  1. The 1.0 era represented by Bitcoin. The Bitcoin network was launched in 2009, and after years of successful operation, traditional financial institutions began to recognize the value of blockchain technology and started exploring the underlying chain.

  2. The 2.0 era represented by Ethereum. Around 2014, various industries realized that Blockchain could create broader value. Fundamental chains supporting multiple functions emerged, enabling diverse business scenarios through smart contracts.

  3. The 3.0 era represented by EOS and others. Since 2017, the demand for the new generation of basic chains has become increasingly clear and unified, mainly referring to blockchain projects that can quickly run various decentralized applications.

The study of the underlying blockchain is of great significance for investment:

  1. The application chain is generated based on the underlying chain, and the relationship between the two is similar to that of branches and the trunk.

  2. The development and maintenance costs of the base blockchain are much higher than those of the application blockchain, and the costs of malicious activities on the base blockchain are also higher. The application blockchain focuses more on operational models and community building, with relatively lower technical requirements.

  3. Currently, a large number of speculative tokens mainly come from application chains. The threshold for issuing ERC20 tokens on Ethereum is relatively low, and there are already over 1000 types of tokens issued based on it. When investing, it is important to carefully distinguish and identify quality projects.

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AltcoinHuntervip
· 4h ago
Another new public chain that Be Played for Suckers.
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GhostInTheChainvip
· 6h ago
I've long seen through the trap of tokens.
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blocksnarkvip
· 6h ago
Still speculating on concepts, those who understand will understand.
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MechanicalMartelvip
· 6h ago
It's quite difficult to distinguish between a coin and a token for many DAO projects.
View OriginalReply0
shadowy_supercodervip
· 6h ago
The crypto world is just about choosing coins, nothing new.
View OriginalReply0
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