Reference
Blockchain glossary
Plain-English definitions for the terms used in Chain Compare network profiles.
Layer 0
A network that helps other blockchains communicate or share security instead of being the main place where ordinary transactions are recorded.
Layer 1
A blockchain that records and validates its own transactions.
Layer 2
A network that processes transactions separately but relies on another blockchain, usually Ethereum, for final settlement.
Smart contract
A program on a blockchain that follows rules when someone sends it a transaction, such as swapping tokens or releasing a payment.
EVM-compatible
Able to run software written for Ethereum's execution standard, so familiar Ethereum contracts, wallets, and developer tools can often be adapted.
Payment network
A blockchain focused on sending and receiving its native currency or issued assets rather than hosting a broad range of applications.
Consensus
The process network participants use to agree on valid transactions and the next shared ledger update.
Confirmation
A point at which a wallet, exchange, or app treats a payment as settled. On Bitcoin, each later block makes a reversal progressively harder.
Network fee
The amount a wallet quotes to have a transaction processed. The fee can change with network demand and the type of action, such as a payment or token swap.
Bridge
A service for moving assets between blockchain networks. A bridge can add a separate fee, waiting period, and security dependency.
Validator
A computer that checks transactions and helps agree on the next update to a blockchain's shared record.