Learn
Welcome to the Yellow Network learning path. This section builds your understanding from fundamentals to advanced concepts.
Yellow Network is decentralized clearing and settlement infrastructure that operates as a Layer 3 overlay on existing blockchains. It lets businesses, exchanges, and application developers move digital assets through signed channel states. Independent node operators run open-source Nitronode software supplied by Layer3 Fintech Ltd. The SDK and developer tools are open-source and free.
:::info What changed in v1
The v1 protocol uses ChannelHub, Nitronode, channel states, home ledgers, and app sessions. If you are coming from @erc7824/[email protected], start with What Changed Since 0.5.3 before opening the code migration guide.
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Introduction
What Yellow Solves: Understand the core problems: scaling, cost, and speed. Learn why state channels are the answer for high-frequency applications.
Architecture at a Glance: See how the protocol, off-chain, and blockchain layers work together to enable fast channel updates with enforceable settlement.
Core Concepts
State Channels vs L1/L2: Compare state channels with Layer 1 and Layer 2 solutions. Understand when each approach is the right choice.
Challenge & Recovery: How Yellow Network handles disputes and ensures your funds are recoverable through the latest mutually signed state.
YELLOW Token: The utility token powering network services, node operator collateral, and dispute resolution.
Glossary: Core v1 terms, statuses, transition literals, and amount-unit reminders.
Migration
What Changed Since 0.5.3: Learn the v1 mental model before changing code: Clearnode is now Nitronode, ChannelHub replaces Custody, and app sessions sit on top of home channels.
Migrating from 0.5.3: Choose the compat-first or native v1 code migration path from @erc7824/[email protected].
Protocol Flows
Protocol Architecture: The Petal Diagram: home chain, cross-chain, transfers, and app sessions.
Transfer Flow: Off-chain transfers between users via Nitronode.
Home Channel Flows: Channel creation, deposits, and withdrawals on the home chain.
App Session Deposit: Depositing funds into app sessions.
Next Steps
After completing the Learn section, continue to:
- Build: Implement complete Yellow applications.
- Protocol: Read the authoritative protocol specification.
- MCP tools: Agent-assisted protocol and SDK lookup documentation is coming soon.
Quick Reference
| Topic | Time | Difficulty |
|---|---|---|
| What Yellow Solves | 5 min | Beginner |
| Architecture at a Glance | 8 min | Beginner |
| State Channels vs L1/L2 | 12 min | Intermediate |
| Challenge & Recovery | 6 min | Intermediate |
| YELLOW Token | 8 min | Intermediate |
| Glossary | 5 min | Beginner |
| What Changed Since 0.5.3 | 8 min | Beginner |
| Migrating from 0.5.3 | 10 min | Intermediate |
| Protocol Architecture | 10 min | Intermediate |
| Transfer Flow | 12 min | Advanced |