What are the four basic functions of a blockchain?

Common blockchains, such as Ethereum and Solana, generally include four functions: 1) Execution, 2) Settlement, 3) Consensus, and 4) Data Availability.

What is the Execution Layer of a blockchain

On a blockchain, execution refers to calculating and processing transactions to transition the blockchain from one state to the next.

What is the Settlement Layer of a blockchain

Settlement refers to dispute resolution. It is only relevant in Rollup scenarios and is not necessary on standalone full Layer 1 blockchains. Since Rollups need to aggregate and confirm transactions on the underlying blockchain, any discrepancies or errors that may arise need to be resolved at the settlement layer.

What is the Consensus Layer of a blockchain

Consensus is about the ordering and final confirmation of blockchain transactions. At the consensus layer, nodes on the blockchain network download and execute all transactions within a block and reach agreement on their order and validity.

What is the Data Layer of a blockchain

The data layer, or data availability, refers to Rollups providing aggregated transaction data on the underlying blockchain, so that anyone can reconstruct the pre-transaction state, execute transactions, and verify their validity. Data availability is also related to Rollups because, by default, transaction data on common Layer 1 blockchains is always accessible for viewing or verification. **$LAYER **