Leveraging the Blockchain Layer


In this video, we will explore the concept of leveraging the blockchain layer to build decentralized applications (dApps) and understand how it offers benefits beyond traditional centralized applications. We will discuss the fundamental aspects of the blockchain layer, its immutability, verifiability, and how it enables trustless cryptocurrency systems.

Meet Victor - Blockchain Engineer

Before diving into the details, let’s briefly introduce Victor, a blockchain engineer working for C-Labs. He has expertise in blockchain scalability, app development, and wallet integration. Victor’s experience has led him to appreciate the unique opportunities blockchain technology presents for creating innovative and decentralized user experiences.

What is the Blockchain Layer?

The blockchain is a foundational layer of technology that underpins decentralized networks. It ensures trust and transparency by recording transactions in a tamper-proof and verifiable manner. Let’s explore some key features of the blockchain layer:


The blockchain’s immutability ensures that once a transaction is recorded on the ledger, it cannot be altered or deleted. No single party has control over the ledger, eliminating the need to trust a centralized authority.


Every transaction on the blockchain is visible and verifiable by anyone on the network. Anyone can access the list of transactions and validate them independently, ensuring the accuracy of the account balances.

Smart Contracts

Smart contracts are self-executing contracts with predefined conditions and outcomes. They run on the blockchain and automatically execute when the conditions are met. Smart contracts expand the capabilities of the blockchain layer beyond simple transactions and enable the creation of complex decentralized applications.

Building on the Blockchain Layer

Why Build on Blockchains?

There are various reasons to choose blockchain platforms over centralized applications. Blockchain’s decentralized nature, security, and transparency attract developers looking to build trustless systems and offer unique user experiences.

Leveraging Smart Contracts

Smart contracts play a crucial role in leveraging the blockchain layer. They are like accounts with attached code and state. Smart contracts allow developers to execute complex logic on the blockchain, making it possible to build decentralized applications with added functionality.

Achieving Consensus with Validators

Blockchain networks use consensus mechanisms to achieve agreement on the state of the ledger. Two popular consensus mechanisms are Proof of Work (PoW) and Proof of Stake (PoS).

Proof of Work (PoW)

PoW, used in Bitcoin and Ethereum, involves miners solving complex mathematical puzzles to validate transactions and create new blocks. While PoW is secure, it is energy-intensive and has limitations in terms of scalability.

Proof of Stake (PoS)

PoS, used in Celo and other blockchain networks, relies on validators who are chosen to create new blocks based on the amount of cryptocurrency they “stake” as collateral. Validators must maintain a good reputation to participate in the consensus process, making it a more energy-efficient and scalable approach.

Optimizing with Light Clients

For some dApps, running a full node might not be practical due to resource constraints. Light clients offer an alternative approach to interact with the blockchain layer with reduced computational requirements.

Light Clients Explained

Light clients process only block headers and use cryptographic proofs to verify transactions without storing the entire blockchain. This makes light clients more suitable for resource-constrained devices like mobile phones.

Ensuring Transaction Finality

When submitting transactions to the blockchain, developers need to ensure their transactions are finalized and cannot be reverted.

Transaction Propagation

When a transaction is sent to the network, it propagates through the network and is shared with all nodes until it reaches consensus.

Transaction Receipts

Transaction receipts are used to confirm the successful inclusion of a transaction in a block. Receiving a transaction receipt ensures the transaction is considered final.

Incentivizing Full Node Operators

Running full nodes is crucial for the health and decentralization of blockchain networks. To incentivize full node operators, various mechanisms can be employed.

Token Rewards

Blockchain networks often have native tokens, which can be used as rewards for full node operators. These rewards can encourage more participants to operate full nodes and support the network’s security and decentralization.

Network Governance

Network governance mechanisms allow full node operators to participate in decision-making processes, shaping the future direction of the blockchain network. This involvement provides an additional incentive for operating full nodes.


In this video, we explored the blockchain layer and its various components. We discussed the immutability and verifiability of the blockchain, the role of smart contracts, consensus mechanisms like PoW and PoS, transaction finality, and the importance of full node operators. Leveraging the blockchain layer enables developers to build trustless and decentralized applications, providing unique opportunities for innovation.

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