Futuristic Approach of AI & Blockchain Technology & How They Complement Each Other?


The combination of blockchain and AI represents two crucial and emerging technologies. Blockchain, known for its versatility and ease of implementation, serves as a shared and permanent ledger for future data encryption. On the other hand, AI has surpassed its experimental limitations in performance and enables individuals to analyze data and make informed decisions.  

While both technologies have distinct origins, they are intertwined with recent advancements in the tech world. When considering their diverse complexities, it is crucial to recognize that integrating artificial intelligence and blockchain offers numerous advantages. 

A survey indicates that blockchain enhances AI’s consistency, comprehensibility, and logical nature. By referring to the ledger, one can delve into the decision-making process of machine learning and understand the reasons behind specific outcomes. The ledger acts as a repository of all data records, aiding decision-making. 

So, let’s explore the Futuristic approach of AI and Blockchain…  

Bringing Blockchain Technology And Artificial Intelligence Together

The interlinking of blockchain technology and AI offers several benefits that can enhance various aspects of technological development. Some key advantages include:  

1. Enhanced Data Security

Blockchain provides a secure and tamper-resistant platform for storing and managing data. By integrating AI with blockchain, the transparency and immutability of the ledger can be leveraged to ensure the integrity and authenticity of data used in AI models. It helps reduce the risk of data manipulation, fraud, and unauthorized access.       

2. Improved Data Quality and Reliability

Blockchain’s distributed nature allows for consensus and data validation across multiple nodes. AI algorithms can leverage this feature to verify the accuracy and reliability of data sources, ensuring high-quality inputs for training models. It helps subside biases, errors, and inconsistencies in the data, leading to more accurate and reliable AI outcomes.    

3. Enhanced Trust and Transparency

The transparency provided by blockchain enables greater visibility into AI decision-making processes. Recording all transactions and data manipulations in the blockchain ledger makes it easier to trace and audit the steps leading to a particular AI decision. It promotes trust and transparency, particularly in critical domains like healthcare, finance, and legal systems.   

4. Improved Data Privacy and Control

Blockchain technology can empower individuals with control over their personal data. AI systems that utilize blockchain can provide users with greater privacy and control by allowing them to grant selective access to their data. It enables individuals to maintain ownership of their data while still contributing to AI training and research efforts.       

5. Efficient Data Exchange and Collaboration

Blockchain facilitates secure and decentralized data sharing among multiple stakeholders. Combined with AI, it enables seamless collaboration and data exchange between different parties, such as researchers, organizations, and individuals. It promotes innovation, accelerates research, and unlocks new possibilities for AI development. 

6. Scalability and Decentralization

Blockchain’s distributed architecture allows for scalability and resilience in AI systems. With AI models deployed on blockchain networks, computation and storage can be distributed across multiple nodes, improving efficiency and performance. This decentralized infrastructure also reduces reliance on a single point of failure, increasing the robustness of AI applications. 

7. Trustworthy Autonomous Systems

Blockchain’s transparency and immutability can contribute to developing trustworthy autonomous systems. AI algorithms can be deployed on blockchain networks, enabling autonomous decision-making while ensuring transparency and accountability. It is valuable in critical domains such as autonomous vehicles, where trust and reliability are paramount. 

The interplay between blockchain and AI can revolutionize various industries and unlock new possibilities for secure, trustworthy, and efficient AI systems.

How Do AI And Blockchain Technology Complement Each Other?

Blockchain technology provides a conventional and costly approach to storing large amounts of data. Storing extensive files on the Bitcoin blockchain, for instance, becomes prohibitively expensive due to the one-megabyte size per block. To address this challenge, data is stored on a decentralized storage medium that connects it to blockchain blocks through hashing or utilizes smart contract code. 

The integration of AI and blockchain technologies enable the creation of decentralized AI applications and algorithms that have access to a shared and trusted data platform. This platform serves as a repository for storing knowledge, records, and decisions. It proves particularly beneficial for maintaining reliable records of AI algorithms throughout the learning and decision-making processes, ensuring transparency and accountability at every stage.            

The Concept Of A Decentralized AI System

The concept of a decentralized AI system aims to achieve processor independence without the drawbacks of sharing aggregated data. It allows users to process information independently across different computing devices. This approach yields diverse insights, enabling fresh problem-solving approaches that may not be possible in a centralized system.     

The potential of a decentralized AI system extends to various domains, such as science, businesses, and meeting public demands. It empowers devices to tackle real-world challenges, engage in trial-and-error learning, and employ reasoning, all while meticulously recording the results. This approach provides a clear and consistent framework for understanding how things operate.   

Integrating AI with blockchain technology plays a crucial role in enabling decentralized learning by facilitating secure knowledge sharing and fostering trust in the decision-making process. It opens avenues for substantial autonomous contributions, coordination, and democratic voting in future decision-making. However, the realization of the full impact of decentralized AI requires robust computing power, fast connectivity, and ample storage capabilities.

Security Approaches Of Decentralized AI Platform

Here explore a few of the security approaches of decentralized AI platforms-

Secured Multi-Party Computations (SMPC)

SMPC is a security method used in decentralized AI platforms that allows multiple parties to jointly compute a function on their private data without revealing the underlying data.  

Blockchain technology can enhance SMPC by providing a trusted and transparent platform for secure data sharing and computation. SMPC can be executed on the blockchain using smart contracts and cryptographic protocols, ensuring the privacy and integrity of sensitive data used in AI computations. 

Generative Adversarial Network (GAN) Cryptography

GAN cryptography is a technique that combines AI and cryptography to protect data privacy in decentralized AI platforms. GANs consist of a generator and a discriminator, which work together competitively to generate synthetic data while preserving the characteristics of the original data. 

Blockchain can leverage GAN cryptography to enable secure data sharing and training of AI models on decentralized networks, ensuring confidentiality and preventing unauthorized access to sensitive information. 

Homomorphic Encryption

It is a cryptographic technique that allows computations to be performed on encrypted data without decrypting it. In the context of decentralized AI platforms, homomorphic encryption can protect data privacy while allowing for secure and privacy-preserving computations. 

Blockchain technology can provide a distributed and transparent infrastructure for executing homomorphic encryption operations, ensuring the confidentiality of data throughout the AI processes performed on decentralized networks.  

By incorporating these security methods, such as SMPC, GAN cryptography, and homomorphic encryption, into decentralized AI platforms, the privacy and security of data can be preserved, enabling secure collaboration and computation among multiple parties while leveraging the benefits of blockchain technology.       

AI + Blockchain: What’s The Future?

The combination of artificial intelligence and blockchain holds the potential to create an immutable, secure, and decentralized system, resulting in significant advancements in data and information security across diverse industries. 

However, the convergence of AI and blockchain technology remains largely unexplored, despite garnering significant attention and ongoing projects dedicated to this groundbreaking fusion. The integration of these two technologies opens up unprecedented possibilities for data utilization. 

By harnessing the unique capabilities of AI and blockchain, their collaboration will offer a logical framework for data management and processing. This synergy has the potential to propel data exploitation to unprecedented levels, unlocking new frontiers of innovation and discovery.  

Embrace the future of innovation by leveraging the synergies of AI and blockchain to create secure, transparent, and transformative solutions. Take the first step towards unlocking their potential today, and for that, get in touch with Infrablok experts 

How To Perform Smart Contracts Auditing?


Blockchain is a secure, reliable, immutable network that provides its users with a lot of trusts despite being trustless. This trust comes in through various conditions that are put over a blockchain in a tamper-proof, decentralized platform in the form of smart contracts. These smart contracts are self-executing computer programs that automatically execute the terms of an agreement when certain conditions are met. These conditions are the terms of an agreement between the two participating parties written in the form of code in the smart contract. For example, contracts for releasing finances when certain preset conditions are met or managing supply chain logistics, voting, etc.  

As smart contracts are codes deployed on the blockchain, it becomes necessary to check them thoroughly before deploying them over the blockchain. Once deployed, they become immutable, which means any vulnerability left unchecked in the smart contract might compromise the security & reliability of the whole system. This thorough checking of vulnerabilities is done through auditing.  

The DAO Hack

The DAO hack is a famous example to understand the extent of loss one might have to bear if smart contracts are not audited properly. In 2016, a vulnerability in the smart contract deployed by DAO was found by a hacker. The vulnerability resulted from a combination of factors, including a lack of proper error handling and insufficient testing. Specifically, it allowed an attacker to repeatedly withdraw the same funds multiple times before the funds were properly transferred and recorded on the blockchain allowing the malicious attacker to drain approximately 3.6 million ETH (worth around $50 million at that time) from the organization’s funds.   

This vulnerability was due to a programming error in the smart contract code, which allowed the attacker to take advantage of a race condition and execute the malicious code before the smart contract had a chance to update its internal state.  

It’s worth noting that this vulnerability was not widely understood or anticipated at the time, and it took the Ethereum community by surprise, resulting in a hard fork of Ethereum and dividing the Ethereum blockchain into Ethereum Classic (ETC) and Ethereum (ETH). Thus, the DAO hack serves as a cautionary tale & a reminder of the importance of thoroughly auditing and testing smart contract code before deploying it on the blockchain.  

Steps For Auditing Smart Contract

Auditing helps ensure that the smart contract is functioning as intended and meets the users’ requirements. The auditing process involves thoroughly examining the code, its logic, and the underlying business requirements. It helps identify potential issues or areas for improvement and ensures that the smart contract will function as expected.  

This auditing follows a two-step approach: the first is to conduct an audit using automated tools, and the second is to get smart contracts audited manually through a certified auditor.  

Automated Audit

Automated audits are done with the help of automated tools (free or paid) available online. Some of the freely available tools that can be used to perform automated audits are as follows –   

1. Mythril

It is an open-source security analysis tool that uses concolic analysis, taint analysis, & control flow checking to detect various security vulnerabilities in Ethereum smart contracts. To use Mythril, install the tool on the computer & run the following command in the terminal to analyze a smart contract:

myth analyze <contract-file> 

For example, if a smart contract is saved in a file named MyContract.sol, then run the following command: 

myth analyze MyContract.sol 

Mythril will then analyze the code and produce a report that lists any potential vulnerabilities it identified. More details on Mythril can be found at https://mythril-classic.readthedocs.io/  

2. Remix

It is a web-based Integrated Development Environment (IDE) for writing, testing, and deploying smart contracts. To audit smart contracts in Remix, activate the MythX plugin and sign in. After signing in, compile the code in the Remix editor and click the “Analysis” button. It will analyze code & produce a report that lists any potential vulnerabilities identified & suggestions for fixing them. 

3. Solhint

It is a linter for Solidity, the programming language used to write smart contracts on the Ethereum blockchain. To use Solhint, install the tool on the computer. Thereafter, run the following command in the terminal to analyze a smart contract:

solhint <contract-file> 

For example, if a smart contract is saved with a file named MyContract.sol, run the following command: 

solhint MyContract.sol 

Solhint will then analyze the code and produce a report of identified issues, such as potential security risks, coding style violations, and missing documentation. 

These are just a few examples of how some of the free smart contract auditing tools can be used. However, these tools can be useful in identifying potential security risks and vulnerabilities in smart contracts. But these tools should not be used alone for auditing. A thorough security audit should also include manual auditing.

Manual Audit

Following are some steps that are taken to conduct a manual audit on smart contracts to ensure the security & functionality of the code –   

Smart Contract Manual Auditing Step

1. Code Review

The first step in auditing a smart contract is thoroughly reviewing the code. The auditor examines the code line by line, looking for any potential vulnerabilities or security risks. They also check that the code adheres to best practices and industry standards. It includes checking for common security pitfalls such as reentrancy, overflow/underflow, and integer rounding errors.  

2. Test Suite Review

The auditor also reviews the test suite to ensure it covers all possible scenarios and edge cases. They verify that the test suite is comprehensive and includes tests for potential security risks.  

3. Testing and Deployment

The auditor deploys the smart contract on a test network & runs a series of tests to check vulnerabilities or security risks. They also check that the smart contract functions as expected and meets the requirements outlined in the code. It may involve using automated tools, such as fuzz testers, to stress-test the code and identify any weaknesses.  

4. Security Analysis

The auditor performs a smart contract security analysis to identify potential risks, such as exploits, unauthorized access, or data leaks. It may involve running security scans and penetration testing to identify potential vulnerabilities.  

5. Report Generation

The auditor generates a report summarizing their findings and recommendations after the audit. This report provides a clear picture of the security & functionality of the smart contract and outlines necessary modifications or fixes issues.  

After following all the steps above, one needs to remember that auditing is an ongoing process, as the code and the underlying blockchain technology keep evolving. Thus, regular security reviews and updates become necessary to maintain the security & functionality of the smart contract.  

Ending Note

Auditing smart contracts is a critical step in ensuring the security and functionality of decentralized applications. A comprehensive audit can help to identify potential vulnerabilities & security risks and help to ensure the successful deployment and operation of the smart contract on the blockchain.  

As a result, it is critical to identify & address any potential security vulnerabilities or bugs before deployment, as they cannot be fixed afterward. Additionally, auditing helps to increase the overall trust and confidence in the smart contract and the platform it operates on. It provides assurance to users that the contract is secure and meets the necessary standards for quality and reliability. So, if you are looking forward to auditing your smart contracts, get in touch with a reliable Blockchain development company (Infrablok). It will help you perform smart contract auditing in a secure and efficient manner. 

Create Decentralized Identifiers And Verifiable Credentials With Veramo Framework


Decentralized Identifiers (DIDs) and Verifiable Credentials have gained significant momentum in recent times due to their potential to revolutionize the way we manage and share our personal information online. 

In this article, know how to create DIDs and Verifiable Credentials using the Veramo Framework.  

What Is Veramo Framework?

Veramo is an open-source JavaScript framework that provides a simple and easy-to-use SDK for creating and managing DIDs and Verifiable Credentials. It is built on top of the Interledger Protocol (ILP) and supports various blockchain platforms, including Ethereum, Bitcoin, and more. 

Veramo, collaborate with the W3C and the DIF to ensure compatibility with a multitude of projects and initiatives in the decentralized identity space. Veramo provides flexibility in designing your agent by offering core plugins for various components such as DID Methods, Messaging Protocols, Storage, Key Management, Authentication, and more.

With Veramo, developers can easily implement DIDs and Verifiable Credentials in their applications, enabling them to build more secure and privacy-respecting systems.

Veramo Key Concepts

Veramo is a decentralized identity framework that focuses on various key concepts that are:

1. Verifiable Data

Verifiable data refers to information that can be verified as true and accurate by a trusted party. Additionally, one can obtain this by using Verifiable Credentials, which are signed digital documents that prove claims about individuals.

A Verifiable Credential in Veramo is a digitally signed and encrypted piece of information that serves as proof of an identity attribute or a claim made about an individual. The signature and encryption are used to ensure the integrity and confidentiality of the information, and the fact that a trusted third party verifies the information provides a high level of trust in its accuracy and authenticity. 

Here is an example of a Verifiable Credential in Veramo using JSON-LD format. In this example, the verifiable credential attests bachelor’s degree for a subject using a DID of did:example:ebfeb1f712ebc6f1c276e12ec21. The proof is signed by the issuer using the EcdsaSecp256k1Signature2019 signature type. 


    "@context": [ 




    "id": "https://example.com/credentials/3732", 

    "type": [ 




    "issuer": "did:example:ebfeb1f712ebc6f1c276e12ec21", 

    "issuanceDate": "2010-01-01T19:23:24Z", 

    "credentialSubject": { 

        "id": "did:example:ebfeb1f712ebc6f1c276e12ec21", 

        "degree": { 

            "type": "BachelorDegree", 

            "name": "Bachelor of Science and Arts" 



    "proof": { 

        "type": "EcdsaSecp256k1Signature2019", 

        "created": "2022-07-01T19:23:24Z", 

        "proofPurpose": "assertionMethod", 

        "verificationMethod": "did:example:12q3vfrt8q9we8rqw0efrq0wqe", 

        "signatureValue": "base64(hF+...)" 



2. Decentralized Identifier

A Decentralized Identifier (DID) is a unique identifier used to refer to a subject in a decentralized system, such as a blockchain or a distributed ledger. In the context of Veramo, a DID can be used to identify a subject of a verifiable credential, such as an individual, an organization, or a device.

DIDs are designed to be self-sovereign, meaning that the subject has control over its own identifier and can manage the associated data without needing a centralized authority. It provides a privacy-preserving and secure way to represent entities with verifiable credentials. Moreover, the DID can be used to ensure that the right data is being shared with the right recipient.

In Veramo, a DID is like a string that starts with the prefix did:, followed by the identifier of the decentralized system where the DID is registered.

Currently, Veramo core supported methods are ether, web, and key. 

For example, a DID could look like this: did:ether:ebfeb1f712ebc6f1c276e12ec21. 

3. Signing & Key Management

Veramo provides tools and plugins for signing and managing keys associated with DIDs. This includes key management plugins for creating, storing, and retrieving private keys, as well as signing plugins for signing Verifiable Credentials. 

4. Plugins

Veramo provides a range of core plugins for DID Methods, Messaging Protocols, Storage, Key Management, Authentication, and more. Developers can use these plugins to design their agents as they see fit. 

You can find a complete list of Vermao plugins here. 

5. Agents

An agent is a piece of software that acts on behalf of an individual in the decentralized identity ecosystem. Veramo provides tools and plugins to build agents that can create and manage DIDs and Verifiable Credentials.

Veramo DID Agent

The Veramo Agent is responsible for performing various tasks, such as:

  • Creating identifiers
  • Resolving identifiers
  • Issuing credentials
  • Revoking credentials
  • Exchanging credentials

Additionally, the Veramo Agent acts as a central hub, providing a common interface for developers to expand its functionality by using plugins. When instantiated, the Veramo Agent manages both core and custom plugins and orchestrates the core event system.  

6. Selective Disclosure Request (SDR)

A Selective Disclosure Request is a feature in the Veramo framework that allows an individual or organization to selectively disclose specific pieces of information from their digital identity. It allows them to control the amount of personal information they share with other parties while maintaining privacy. The Veramo framework uses cryptographic techniques to securely store and share this information, ensuring that only authorized parties can access it.

Steps To Create A DID & Verifiable Credential Using Veramo CLI

Following the below-mentioned steps, you can form a DID and Verifiable Credential using Veramo CLI.

#1 Step: Install Veramo CLI

The first step is to install the Veramo CLI by running the following command in your terminal:

npm i @veramo/cli -g

#2 Step: Create Configuration File

You can create a configuration file in the current folder by running the following: 

veramo config create 

#3 Step: Create A DID

To create a DID, run the following command:

veramo did create 

This command will create a DID and store the keys in a local database.

#4 Step: Resolve A DID

To resolve a DID, use the following command with the identifier of the DID you want to resolve, such as


veramo did resolve your_did_identifier 

#5 Step: Create A Verifiable Credential

To create a Verifiable Credential, run the following command:

veramo credential create 


In this article, one can learn how to create DIDs and Verifiable Credentials using the Veramo Framework using CLI. The Veramo Framework provides a simple and easy-to-use API for creating and managing DIDs and Verifiable Credentials, making it an excellent choice for developers who are new to the space.  

The Veramo framework can be implemented in projects using CLI or SDKs in various languages, including NodeJS, ReactJS, and React Native; you can choose the option that best suits your project requirements. 

If you are planning to develop such projects, connect with Infrablok. Our technicians are proficient in Node.js, React.js, and React Native and can assist in developing a DID project using the Veramo framework.      

Exploring The Different Layers Of Blockchain Technology


In 2021, worldwide spending on Blockchain solutions was predicted to reach $6.6 billion. As Blockchain solutions become more prevalent in the coming years, spending is expected to reach $19 billion by 2024.  

Blockchain technology is a decentralized digital ledger created with blocks that form data across a peer-to-peer (P2P) network. Once data is stored on this ledger, it becomes near unattainable to delete, modify and hack. In fact, this unique characteristic of Blockchain has inspired many to build Blockchain-based projects for their businesses.  

However, before pondering how the Blockchain can be utilized in your business, you must first understand how it works. To take advantage of Blockchain technology fully, let’s examine Blockchain layers.   

The Structure Of Blockchain Layered Architecture

Blockchain technology is built on a layering architecture. It is divided into various layers, where each layer serves a specific purpose. At its core, all the layers work together to provide a secure, reliable, decentralized layered network called Blockchain.  

Let’s explore the various layers that make Blockchain technology work – 

Blockchain Layered Architecture 

1. Infrastructure Or Hardware Layer

It is the first layer of the blockchain network that consists of network and data servers. It consists of data servers that securely store the data of the Blockchain. Blockchain follows peer-to-peer (P2P) network architecture where each node is connected to every other node in a network.   

But this network is distributed across the globe, making it decentralized. Sharing of data is quick and easy because of this P2P architecture. It is done by following the client-server architecture approach. Thus, a distributed ledger is constructed where a node communicates with another node and is allowed to randomly check the transactional data.

When a blockchain dApp sends a request to the data server for access, it connects with the peer client in its P2P network, letting the exchange of data with each other. The transactions in this network are computed, validated, and recorded in an organized way in a shared ledger creating a distributed database.      

2. Data Layer

It is the second layer of blockchain technology and is responsible for storing and organizing data on the Blockchain. It uses a linked list of blocks to arrange the transactions, and when a certain number of transactions are authenticated by nodes, the data is clubbed into a block. This block is uploaded to the Blockchain’s linked list as a new block and linked to the previous block. If it’s the first block in the list, then there can be no linkage to the previous block; in this case, it is known as the genesis block. 

Each block in the Blockchain has the Merkle tree’s root hash along with the previous block’s hash, timestamp, nonce, and block version number. This information in each block guarantees the Blockchain’s security, integrity, and irrefutability. All transactions in Blockchain are digitally signed by the private key of the sender’s wallet and are known as finality. 

Every transaction on the block is signed digitally with the private key from the sender’s wallet. Since this key is only available to the sender, data can’t be tampered with by anyone. This step is termed “finality”. The data is also protected by the digital signature that protects the owner’s identity, which is encrypted for security reasons. 

Layers Present In Data Layer

The layers in the data layer of a Blockchain can be categorized as follows – 

  • Data Storage Layer – This is the layer that actually stores the data on the Blockchain. It can be implemented using various distributed ledger technologies, such as a distributed hash table or a directed acyclic graph. An example of a distributed ledger technology used in Blockchain networks is the Blockchain itself, which stores transactions and blocks in a chain-like structure using cryptographic hashes to ensure the integrity and security of the data. 
  • Data Organization Layer – This is the layer that organizes the data on the Blockchain in a way that is easy to access and retrieve. This can be accomplished using indexing systems or data structures that allow for efficient data storage and retrieval. An example of a data organization layer in a blockchain is the Merkle tree, which is a data structure that enables efficient verification of large amounts of data. 

 3. Network Layer 

It is also known as the P2P layer or propagation layer that does inter-node communication. The transaction on the Blockchain is carried out by nodes. P2P helps nodes in a network detect other nodes to make inter-node communication easy and quick. 

Moreover, it lets multiple nodes transmit transactions to settle an agreement on the transaction’s legality. It handles block generation, node detection, and block addition in the blockchain network. 

4. Consensus Layer 

The most vital layer out of all the layers on the Blockchain is the Consensus layer. This layer holds the major responsibility that is authenticating transactions. If this layer fails to authenticate the transaction or does not do it correctly, then the whole system will fail. It implements the protocol to validate transactions that are based on some complex mathematical formula that needs a certain number of nodes to validate that single transaction.  

Thus, several nodes process every transaction when the required number of nodes reach the same conclusion and agree to its legality. Thereafter the transaction is validated, making it a decision based on the consensus mechanism, where no single node has control, therefore, maintaining the decentralized characteristic of Blockchain.   

At any given time, multiple nodes are processing transactions, bundling them, & adding them to the Blockchain, which may result in the generation of several blocks at the same time resulting in a blockchain branch. But the consensus layer ensures that only a single block is added at any given time to the Blockchain and addresses all the disputes related to it, enforcing uniformity of the network. 

Examples Of Consensus Algorithm 

A couple of examples of consensus algorithm used in Blockchain is –  

  • Proof of Work (PoW): This is the consensus algorithm used by the Bitcoin Blockchain. It requires nodes to solve a complex mathematical problem in order to validate new transactions and create new blocks. The first node to solve the problem gets to add the new block to the Blockchain and is rewarded with Bitcoin. 
  • Proof of Stake (PoS): This consensus algorithm allows nodes to “stake” their tokens to validate new transactions and create new blocks. The more tokens a node stakes, the higher the chances of it being chosen to validate a new block.

5. Application Layer

It is the topmost layer of the Blockchain network stack where decentralized applications (dApps), smart contracts, etc., interact with the users via scripts, APIs, user interfaces, and frameworks. Users can perform any action at this layer, like buying or selling a cryptocurrency or NFT, tracking transactions over the network, tracking the supply chain, securely voting, etc. 

Additionally, the protocols in this layer are subdivided into application and execution layers. End-users utilize the programs at the application layer to communicate with the Blockchain network. The application layer then gives instructions to the execution layer to execute the transaction, ensuring that the deterministic nature of the Blockchain is maintained.  

Examples of applications built on the Application layer are cryptocurrency wallets, decentralized exchanges, and prediction markets, to name a few.  

Different Layers Of Blockchain Protocols

Another way to understand Blockchain technology is by knowing the different layers of Blockchain protocols. The blockchain network comprises four layers, as follows – 

Difference between blockchain layers

Layer 0

It is a base of the Blockchain ecosystem on which the rest layers are built and is often referred to as the Blockchain itself. It consists of the network and all its components (physical infrastructure and hardware) that work together to make the blockchain function. 

The solutions provided at this layer are compatible with the scaling solutions of Layer 1 and Layer 2. In addition, this layer supports the functionality of cross-chain communication or inter-chain operability. The native token of respective chains belongs to this layer. 

Some examples of Layer 0 are Bitcoin, Ethereum, Polkadot, Avalanche, Cardano, Cosmos, etc.   

Layer 1

It consists of the protocol or architecture that defines how the blockchain network operates. It carries out tasks like resolving disputes, consensus mechanisms like proof-of-work or proof-of-stake, protocols, and constraints. 

Layer 1 can validate and finalize transactions on its own. Blockchains at Layer 1 have their own native token, known as a coin, which is used to pay transaction or gas fees. It symbolized the actual Blockchain. 

Tasks that are required to be solved in this layer give rise to the Blockchain’s scalability issue. Any increase in the Blockchain means higher computational power required to solve & add blocks in the Blockchain, resulting in high fees and longer processing times. 

Some examples of Layer 1 are Bitcoin, Ethereum, Binance, and Solana.   

Layer 2

This layer is also known as the execution layer of the Blockchain. The increase in scalability and, thus, throughput was getting restricted in layer 1, which gave rise to layer 2. It helps in solving the scalability problems of Layer 1 to a certain extent by computing the transactions off-chain.

Moreover, it took off the heavy lifting from Layer 1 by moving those transactions off-chain, which need not be recorded on-chain. This allowed third-party or off-chain solutions on Layer 2 to be integrated with Layer 1.  

As this layer sits on top of Layer 1 and exchanges information with it, it adds to the features of Layer 1. 

Example – Lightning Network deployed on Bitcoin blockchain or plasma on Ethereum.   

Layer 3

This is the application layer or user interface where the users interact with the Blockchain using dApps. It hosts dApps and other protocols that enable users to use other applications over Blockchain. Moreover, it aims to provide ease to the user, enabling intra and inter-chain operability.  

Examples of Layer 3 decentralized applications include decentralized exchanges like Pancake swap, wallets like Coinbase, liquidity management protocols like Aave, and payment mechanisms like Tornado cash, to name a few.  

Wrapping Up

Blockchain is a layer stack made up of several layers where each layer is dedicated to serving a specific purpose. From setting up of network and servers in the infrastructure layer to letting the users interact with the dApps in the Application layer, all the layers work in conjunction with each other to create a secure, decentralized, reliable network. Understanding all the layers of Blockchain can help understand its core functioning and create better dApps. 

If you are interested in building feature-rich dApps for your business vertical, connect with one of the best Blockchain development companies (Infrablok). By doing so, you will get a dedicated development team who will help you form unique and business-centric dApps.

Blockchain Technology vs Cryptocurrency: Know The Difference


In the business world, people have a lot of confusion regarding Blockchain and Cryptocurrency. Well, they both are different terms often employed interchangeably.

Cryptocurrencies are digital currencies that make use of Blockchain as a ledger for stowing records of crypto transactions. Whereas, Blockchains have many benefits beyond cryptocurrencies which includes storing and accessing medical data, supply chain & logistics, and financial records.

To help you better understand here in detail, I have explained a few crucial things related to Cryptocurrency vs Blockchain technology.

So, let’s get started!

Blockchain Overview

It is one of the trending technology which is used to store records or electronic databases using a distributed ledger system. Blockchain technology stores enormous amounts of data in (such as Cryptocurrency transaction records) blocks, groups, or hashes.

These blocks are distributed across numerous computers or a “distributed ledger.” Once each block reaches its storage limitation, it is “chained” to a block loaded previously, and a new block comes into service.

Blockchain Key Features


Blockchain Working

A Blockchain ledger includes two sorts of records, individual transactions & blocks. The primary block comprises a header and information related to exchanges occurring within a set time. The block’s timestamp is utilized to make an alphanumeric string called a hash.

After the primary block has been made, each resulting block in the record utilizes the past block’s hash to compute its own hash.

Before adding another block to the chain, its authenticity should be checked by a computational cycle called consensus or validation. Currently, in the Blockchain process, a bulk of nodes in the network must consent that the new block’s hash has been calculated accurately. Consensus guarantees that all duplicates of the Blockchain distributed ledger share a similar state.

When a block has been added, it can be referenced in ensuing blocks but cannot be altered.

If somebody endeavors to trade out a block, the hashes for past and ensuing blocks will likewise change and disturb the record’s common state.

At the point when consensus is not conceivable, different PCs in the organization know that an issue has happened, and no new blocks will be added to the chain until the issue is settled.

Normally, the block causing the mistake will be disposed of, and the agreement cycle will be rehashed.

Pros And Cons Of Using Blockchain


  • Decentralization
  • Network distribution
  • Low costs for users


  • High implementation costs
  • Private keys
  • Inefficiency
Read More: Accessing Real Time Data Using Chainlink Oracles

Cryptocurrency Overview

A Cryptocurrency is a digital store of value primarily for buying and selling services, goods, or property. Popular examples include Bitcoin, Ethereum, and Litecoin.

No centralized authority issues or controls these digital currencies, so they are cryptographically protected against counterfeiting. Moreover, Cryptocurrencies are also known as tokens or coins.

Cryptocurrency Key Features

Cryptocurrency Working

Cryptocurrencies operate on a distributed public ledger known as Blockchain, a record of all transactions revamped and held by cash holders.

Units of digital currency are made via mining, which includes utilizing the PC’s ability to take care of muddled numerical issues that produce coins. Users can likewise purchase the monetary forms from agents, then store and spend them utilizing cryptographic wallets.

Assuming that you own cryptographic money, you own nothing unmistakable. What you own is a key that permits you to move a record or a unit of a measure starting with one individual to another without an authorized third party.

Moreover, Bitcoin has been around since 2009, cryptocurrencies & applications of Blockchain technology are still emerging in financial terms, & more benefits are anticipated in the future. Transactions involving bonds, stocks, & other financial assets, could ultimately be traded utilizing technology.

Pros And Cons Of Using Cryptocurrency


  • Protection From Inflation
  • Self-governed & Managed
  • Simple Currency Exchange


  • Illegal Transactions Can Be Done
  • No Refund Or Cancellation Policy
  • Susceptible To Hacks

Blockchain Vs Cryptocurrency: Similarities Between Both

The factors explained below will help you know the similarities between Blockchain technology vs Cryptocurrency.

1. Intangible

Blockchain technology and cryptocurrencies are both intangible. Cryptocurrencies are intangible digital coins that no one can hold physically, like the US dollar or the Indian rupee.

The Blockchains utilized for storing cryptocurrencies do not exist in a single area or the form of a physical data center.

2. Advanced

Cryptocurrencies and Blockchains are technologically advanced. Blockchain is the underlying technology behind cryptocurrencies. Blockchain is more refined and secure than traditional databases.

On the other hand, Cryptocurrencies are more advanced in comparison with physical or paper-based currencies.

3. Interdependent

Blockchain came into reality to record bitcoin transactions (the world’s first cryptocurrency). All major cryptocurrencies have Blockchains for storing transactions.

For example, if someone buys a new bitcoin, its data related to the transaction will be recorded in a bitcoin Blockchain.

Difference Between Blockchain Technology and Cryptocurrency

Well, Blockchain platforms without Cryptocurrency do exist — and may also be a better bet for some use cases. We can say Cryptocurrency is merely an app running on top of a Blockchain. The model changes in some way without Cryptocurrency (coins), but it’s still possible to build a valuable platform. Here are the few major differences between both:

1. Monetary Value

All cryptocurrencies, whether Bitcoin or Ethereum, have their own economic value. You must have heard of Bitcoin hitting a high of $65,000 or Ether reaching $4,000. Whereas, Blockchain does not have any monetary value.

2. Usage

Blockchain technology is used for recording transactions in MedTech, FinTech, as well as logistics. On the other hand, Cryptocurrencies are digital tokens, or digital money, used for buying goods & services, plus they can be used for investment too.

3. Transparency

Being a public ledger, Blockchain is highly transparent. Anyone can join a Blockchain network & view the data which is available. On the other hand, cryptocurrencies offer anonymity, meaning no one can know or see the source or destination behind the transaction.

4. Mobility

Blockchain technology is completely decentralized and distributed worldwide, meaning there is no particular location where data is recorded. On the other hand, cryptocurrency is a part of the Blockchain and can be accessed using smartphone wallets. Say you have an Ethereum wallet; it can be used at any location for transaction purposes.


As we all know, that Blockchain is one of the hot topics around the business world, so several people are just exploring this technology. People often confuse Blockchains with cryptocurrencies. Some tend to believe that they are just synonyms.

Hopefully, this “Blockchain Technology vs Cryptocurrency: Know The Difference” blog will help differentiate between the two.

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