Application Layer

Return to Glossary

In OCI, the Application Layer of the seven-layer Open Systems Interconnection (OSI) Model is the top layer that approaches protocols for application interaction with the network.

With a focus on end-user services, the application layer helps to facilitate process-to-process connections over Internet protocol.

Source: Application Layer

In Decentralized Finance (DeFi), the Application Layer as the name indicates, is where consumer-facing applications reside. These applications abstract underlying protocols into simple consumer-focused services. Most common applications in the cryptocurrency ecosystem, such as decentralized cryptocurrency exchanges and lending services, reside on this layer.1) Rakesh Sharma, Investopedia, 24 March 2021, Decentralized Finance (DeFi) Definition, Accessed 24 May 2021, https://www.investopedia.com/decentralized-finance-defi-5113835

Source: https://www.investopedia.com/decentralized-finance-defi-5113835