Definition ∞ Layered protocol design involves structuring a blockchain or network system into distinct, interconnected architectural layers, each responsible for specific functions. This modular approach enhances scalability, flexibility, and maintainability by separating concerns such as data availability, consensus, and application logic. Each layer operates independently yet cooperates to support the overall system’s functionality. It allows for specialized optimization at different levels.
Context ∞ Discussions about layered protocol design are central to solving the scalability trilemma in blockchain technology, particularly with the rise of Layer 2 solutions. News often reports on advancements in these architectures, such as rollups or sharding, which aim to improve transaction throughput and reduce costs. The ongoing development of these layers directly influences the adoption and utility of decentralized applications.