Learn
Welcome to the Yellow Network learning path. This section builds your understanding from fundamentals to advanced concepts.
Yellow Network is a decentralized clearing and settlement infrastructure that operates as a Layer 3 overlay on top of existing blockchains. It enables businesses — brokers, exchanges, and application developers — to move digital assets across multiple blockchain networks through a unified peer-to-peer ledger, without relying on a centralized intermediary. The network is formed by independent node operators who run open-source clearnode software supplied by Layer3 Fintech Ltd. on their own infrastructure. The YELLOW token provides access to network services including clearing, SDK and developer tools, node operation, the AppRegistry, and dispute resolution.
Introduction
Start here to understand what Yellow Network solves and how it works.
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 three protocol layers (on-chain, off-chain, application) work together to enable fast, secure transactions.
Getting Started
Get hands-on with Yellow Network in minutes.
Quickstart: Your First Channel — Create a state channel, perform an off-chain transfer, and verify the transaction in under 10 minutes.
Prerequisites & Environment — Set up a complete development environment with Node.js, TypeScript, and the VirtualApp SDK.
Key Terms & Mental Models — Build your vocabulary and conceptual framework for understanding state channels.
Core Concepts
Deep dive into the technology powering Yellow Network.
State Channels vs L1/L2 — Compare state channels with Layer 1 and Layer 2 solutions. Understand when each approach is the right choice.
App Sessions — Multi-party application channels with custom governance and state management.
Session Keys — Delegated keys for secure, gasless interactions without repeated wallet prompts.
Challenge-Response & Disputes — How Yellow Network handles disputes and ensures your funds are always recoverable.
Message Envelope — Overview of the Nitro RPC message format and communication protocol.
YELLOW Token — The utility token powering network services, node operator collateral, and dispute resolution.
Protocol Flows
Detailed v1 protocol flow documentation for deposits, withdrawals, transfers, and app sessions.
Protocol Architecture — The Petal Diagram: Home Chain, Cross-Chain, Transfers, and App Sessions.
Transfer Flow — Off-chain transfers between users via the Clearnode.
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 Reference — Authoritative protocol specification
Quick Reference
| Topic | Time | Difficulty |
|---|---|---|
| What Yellow Solves | 5 min | Beginner |
| Architecture at a Glance | 8 min | Beginner |
| Quickstart | 10 min | Beginner |
| Key Terms | 10 min | Beginner |
| State Channels vs L1/L2 | 12 min | Intermediate |
| App Sessions | 8 min | Intermediate |
| Session Keys | 8 min | Intermediate |
| Challenge-Response | 6 min | Intermediate |
| Message Envelope | 5 min | Intermediate |
| YELLOW Token | 8 min | Intermediate |
| Protocol Architecture | 10 min | Intermediate |
| Transfer Flow | 12 min | Advanced |