I am aware of the Checked and Unchecked Exception in Java.
In a multi-tiered environment, does unchecked Exception has a better performance over checked Exception?
There is absolutely zero performance difference. They're both just Exceptions.
Checked-/unchecked-ness is purely a compile-time concept.
try-catch) or listed in the throws clause of the method. There is no run-time check for that. See "Compile-Time Checking of Exceptions" and "Run-Time Handling of an Exception" in the JLS. Therefore, the difference between checked and unchecked is a compile-time concept.
Exceptions. Checked/unchecked is purely a compile-time concept.