Is there a genuine return in the cryptocurrency market space? (or) Are retailers flocking into the cryptocurrency space out of greed? Why is the interest in the cryptocurrency market space growing day by day? What is Layer 1? What are Layer 2 solutions?

Layer 1 of the OSI layer refers to the physical media of the network, which are the actual hardware components that process and transmit digital data across great distances. It defines the means of transport for raw bits of data, actual electrical signals, rather than the logical data packets that other layers handle.

In simple terms, Layer 1 is the hardware. The physical layer is responsible for the transmission and reception of unstructured raw data between a device and a physical transmission medium. It converts the digital bits into electrical, radio, or optical signals.

Layer 2 protocols are a list of communication protocols used by Layer 2 devices (such as network interface cards (NIC), switches, multiport bridges, etc.) to transfer data in a wide area network, or between one node to another in a local area network.

Thus, Layer 2 is the language used to communicate.

Layer 3 is responsible for creating paths (or circuits) that are used to transmit data from one node to the next. This layer offers routing, switching, and forwarding technologies and also packet sequencing.

Simply put, layer three operations are responsible for receiving data frames from layer 2 and delivering that data to where it’s supposed to go. This is done using IP addresses and other information.

Each layer performs different functions, yet they need each other for their well-being.

So, the world of cryptocurrency space is made up of all of these technological stuff.  And on this space is located the tokens like Bitcoin, LTC, Ethereum, and several hundreds of tokens.

All of these protocols serve to solve a problem by facilitating a solution to real-world operations, and therefore they generate value.  Depending upon the quality of service they provide their value goes up or goes down.  When mass adoption is high, the value climbs up, and when it is low, the value goes down.

Those who have bought the tokens or earned the tokens when the value for a low make profits by selling it when the difference between the buy price and now price is high.  However, those who sell worrying that the protocol is doomed and has no hope to recover in the near future, don’t make as many profits.

Greed is an individual attribute, but overall, investors are here to make money – some decent profits.  They do have hurdles to face and overcome before they make profits consistently.