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Layer 1 is the base blockchain (i.e. "Hive"). All posts and comments reside on Layer 1, along with all account-level transactions (e.g. who follows whom).

However, there is currently another blockchain that runs parallel to Layer 1, called Hive-Engine. It is a 'Layer 2' blockchain. Other Layer 2 blockchains are under development. At present, though, Hive-Engine is the only Layer 2 chain.

Layer 1 tokens include HIVE (which can be staked as HIVE Power) and HBD. Layer 1 rewards are issued as some combination of HIVE, HP, and HBD.

Layer 2 tokens (also called H-E tokens, short for Hive-Engine tokens), include everything else (go here to see a list of them), such as LEO, POB, DEC, SPS, BEE, APE, etc. You post 'on Layer 2' whenever you use certain tags, such as leofinance and proofofbrain, but those tags just tell Hive-Engine to reward the post with Layer 2 tokens in addition to Layer 1 tokens.

Also, a single post (and all its related comments) can earn multiple Layer 2 tokens at the same time (depending on which tags were included in the original post). For example, this post (and all comments and sub-comments) is earning POB, BEE, PAL, NEOXAG, and ARCHON.

So, if you join a Layer 2 community (also called a 'tribe') and everyone in that tribe only owns the Layer 2 token associated with that tribe, and no one who owns HIVE (or HP) ever votes for any of the posts associated with that tribe, then although the posts reside on Layer 1, there are no Layer 1 rewards being issued to the author of that post, or to its curators, or to any commenters. In that sense, the Layer 2 tribe can essentially operate in complete oblivion to Layer 1. In fact, the Layer 2 tribe could even have its own login system such that Layer 2 tribe members might not even know that they are posting to Hive. LeoFinance has an onboarding feature like that. You could conceivably join LeoFinance (using their Twitter onboarding process) and post and interact without ever realizing you are actually doing so 'on Hive'.

@trostparadox thanks for educating us...now i understand how layer 1 and layer 2 works ...i am looking forward to your layer 2 community that you want to create.. ..


Posted via proofofbrain.io

layer one is Hive, layer two are community tokens

And I’ll just jump in here. Layer 0 is the community that makes this a social blockchain. Speaking of which! It’s always good to see new people here on the blockchain! Welcome and thank you for asking this question. I think there could be lots of other people wondering the same things you are. 👍

Keeping asking the questions and commenting. Your on the right track! 🙂