Multi-Tier Network

Definition ∞ A multi-tier network refers to a blockchain architecture structured with distinct layers, each serving specialized functions to enhance scalability, efficiency, and functionality. Typically, a base layer handles core security and decentralization, while upper layers manage faster transactions, smart contract execution, or specific application logic. This design distributes computational load, allowing the network to process more transactions and support complex applications. It addresses the limitations of single-layer blockchain designs.
Context ∞ Crypto news frequently covers multi-tier networks as a primary solution to the scalability challenges faced by many prominent blockchains. Discussions often compare the different approaches to layering, such as rollups, sidechains, and sharding, and their respective trade-offs in terms of security and decentralization. Future developments will focus on improving interoperability between these layers and optimizing their interaction to create more seamless and efficient decentralized ecosystems.