A Layer 1 (L1) blockchain is the primary network that defines its own protocol, consensus mechanism, and native token. It is responsible for the fundamental tasks of a decentralized ledger: processing and finalizing transactions, maintaining the state of the network, and ensuring security through mechanisms like Proof of Work (PoW) or Proof of Stake (PoS). Prominent examples include Bitcoin, Ethereum, and Solana, each with its own distinct ruleset and governance. The performance, security, and decentralization of an L1 are intrinsic properties of its core design, often referred to as the blockchain trilemma.
LABS
Glossary
Layer 1 (L1)
A Layer 1 (L1) is the foundational, base-level blockchain protocol responsible for its own security, consensus mechanism, and data availability.
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definition
BLOCKCHAIN FOUNDATION
What is Layer 1 (L1)?
Layer 1 (L1) refers to the base, foundational blockchain protocol that operates independently, providing the core infrastructure for transaction validation, consensus, and network security.
The architecture of an L1 is defined by its consensus mechanism, which is the algorithm that allows all nodes in the network to agree on the state of the ledger. For instance, Bitcoin uses Proof of Work, requiring miners to solve cryptographic puzzles, while Ethereum now uses Proof of Stake, where validators stake the native ETH token to propose and validate blocks. This core layer also manages its own cryptographic primitives, block time, and gas fee model. Scalability challenges at this layer, such as limited transaction throughput, are often addressed through L1 scaling solutions like sharding or increasing block size.
L1s are distinguished from Layer 2 (L2) solutions, which are secondary frameworks built on top of an L1 to enhance its capabilities. While L2s like rollups or state channels inherit security from the underlying L1, they handle transaction execution off-chain to improve speed and reduce costs. The interoperability between different L1 blockchains is facilitated by cross-chain bridges and protocols, enabling asset and data transfer across otherwise isolated networks. The ongoing evolution of L1s focuses on solving scalability without compromising decentralization or security, driving innovation in consensus models and virtual machine design.
etymology
TERMINOLOGY
Etymology & Origin
The term 'Layer 1' emerged from the need to categorize the foundational architecture of blockchain networks, distinguishing them from secondary scaling solutions.
The term Layer 1 (L1) originates from a network protocol stack model, where each layer builds upon the one below it to provide specific services. In blockchain, L1 refers to the base protocol itself—the foundational network that defines its own consensus mechanism, native token, and core rules. This includes the entire blockchain's state, its transaction history, and the security model enforced by its nodes. Prominent examples are the Bitcoin and Ethereum mainnets, which operate as independent, sovereign L1s.
The conceptual framework of 'layers' became essential with the advent of Layer 2 (L2) scaling solutions. As base chains like Ethereum faced congestion and high fees, developers created secondary protocols (L2s) that inherit security from but execute transactions off the main L1. This necessitated clear terminology: L1 for the settlement and security layer, and L2 for the execution and scaling layer. The dichotomy is now a standard architectural model for discussing blockchain scalability and interoperability.
The etymology reflects a shift from viewing a blockchain as a monolithic system to understanding it as a modular stack. While early discussions simply referred to 'the blockchain,' the L1/L2 paradigm acknowledges that core functions—consensus and data availability—can be separated from execution. This layered thinking is foundational to modern blockchain design, enabling innovations like rollups and sidechains while maintaining the security guarantees of the underlying L1.
key-features
ARCHITECTURE
Key Features of Layer 1 Blockchains
Layer 1 blockchains are the foundational, base-level networks that define their own consensus mechanism, security model, and native token. These core features determine a network's performance, decentralization, and developer experience.
01
Consensus Mechanism
The protocol that validates transactions and secures the network by achieving agreement among distributed nodes. Proof of Work (PoW) uses computational puzzles, while Proof of Stake (PoS) uses staked assets. The mechanism directly impacts security, energy consumption, and finality speed. Examples: Bitcoin (PoW), Ethereum (PoS), Solana (Proof of History).
02
Native Token & Gas
The primary cryptocurrency native to the L1, used to pay transaction fees (gas) and incentivize network participants. It is essential for:
- Security: Rewarding validators or miners.
- Governance: Voting on protocol upgrades (in some networks).
- Economic Activity: The base unit for DeFi, NFTs, and payments. Examples: ETH (Ethereum), SOL (Solana), ADA (Cardano).
03
Virtual Machine & Smart Contracts
The runtime environment that executes decentralized application logic. The Virtual Machine (VM) is a sandboxed, deterministic computer that processes smart contracts. Key aspects include:
- Determinism: Ensures all nodes compute identical results.
- Isolation: Prevents bugs in one contract from crashing the network.
- Examples: Ethereum Virtual Machine (EVM), Solana's Sealevel, Move VM (Aptos, Sui).
04
Scalability Trilemma
The theoretical trade-off where a blockchain must balance three core properties: Decentralization, Security, and Scalability. It's challenging to optimize all three simultaneously. L1 designs prioritize different aspects:
- Bitcoin: Prioritizes decentralization and security.
- Solana: Prioritizes scalability and security.
- Ethereum: Evolves to improve scalability while maintaining decentralization and security.
05
Data Availability & Sharding
Methods to increase transaction throughput. Data Availability ensures all transaction data is published and verifiable. Sharding is a scaling technique that partitions the network into smaller chains (shards) that process transactions in parallel, significantly increasing total capacity. Examples: Ethereum's Danksharding roadmap, Near Protocol's Nightshade.
06
Finality & Settlement
The irreversible confirmation of a block of transactions. Probabilistic Finality (e.g., Bitcoin) means confidence increases with subsequent blocks. Deterministic Finality (e.g., Ethereum post-merge) provides absolute confirmation after a consensus round. The L1 is the ultimate settlement layer where asset ownership is authoritatively recorded.
how-it-works
FOUNDATION
How a Layer 1 Blockchain Works
A Layer 1 (L1) blockchain is the foundational protocol that provides the core infrastructure for a decentralized network, establishing its own consensus mechanism, security model, and native token.
A Layer 1 (L1) blockchain is the base-level protocol that defines a network's fundamental rules, including its consensus mechanism (like Proof-of-Work or Proof-of-Stake), its data structure (the blockchain itself), and its native cryptocurrency (e.g., BTC, ETH, SOL). It is responsible for processing and finalizing transactions, securing the network against attacks, and maintaining a single, canonical state. These networks are called "Layer 1" because they are the primary settlement layer upon which all other applications and scaling solutions are built.
The core operational loop of an L1 involves three key functions: transaction execution, consensus, and data availability. When a user submits a transaction, network nodes (validators or miners) execute it to update the state. They then use the L1's consensus mechanism to agree on the order and validity of a batch of transactions, forming a new block. This block, containing the transaction data and the new state root, is then permanently appended to the immutable chain, making the data available to all participants.
Key architectural components include the virtual machine (like the Ethereum Virtual Machine) that executes smart contract code, the peer-to-peer network that propagates transactions and blocks, and the cryptographic primitives (e.g., digital signatures, hash functions) that ensure security. The design choices for these components create inherent trade-offs, often described by the blockchain trilemma, which posits the difficulty of optimizing for decentralization, security, and scalability simultaneously.
Prominent examples illustrate different design philosophies. Bitcoin prioritizes security and decentralization via Proof-of-Work, serving primarily as digital gold. Ethereum, with its Turing-complete EVM, is a general-purpose settlement layer for smart contracts and decentralized applications (dApps). Solana and Avalanche employ novel consensus mechanisms like Proof-of-History and Snowman to achieve high throughput, emphasizing scalability while maintaining security.
The limitations of L1s, particularly in transaction throughput and cost, have led to the development of Layer 2 (L2) scaling solutions and modular blockchain architectures. L2s like rollups and state channels process transactions off-chain and post proofs or data back to the L1 for security. This evolution positions the L1 increasingly as a secure settlement and data availability layer, while delegating execution to specialized upper layers, creating a multi-layered ecosystem for blockchain scalability.
examples
PROTOCOL LANDSCAPE
Prominent Layer 1 Examples
A Layer 1 (L1) blockchain is a foundational, independent network that validates and finalizes transactions on its own protocol. These are the primary settlement layers for digital assets and smart contracts.
06
Monolithic vs. Modular
A key architectural distinction among L1s. Monolithic chains (e.g., Solana, early Ethereum) bundle execution, settlement, consensus, and data availability. Modular chains (e.g., post-Merge Ethereum, Celestia) decouple these functions:
- Execution: Processing transactions (Handled by Rollups in modular design).
- Settlement: Dispute resolution and finality.
- Consensus & Data Availability: Ordering transactions and ensuring data is published.
ARCHITECTURAL COMPARISON
Layer 1 vs. Layer 2: Core Differences
A technical comparison of base blockchain protocols (Layer 1) and their scaling solutions (Layer 2).
| Feature | Layer 1 (Base Chain) | Layer 2 (Scaling Solution) |
|---|---|---|
Primary Function | Base consensus and data availability | Transaction execution and processing |
Security Source | Native consensus (e.g., PoW, PoS) | Derived from the underlying L1 (e.g., fraud/validity proofs) |
Transaction Throughput | 10-100 TPS (typical) | 2,000-40,000+ TPS |
Transaction Finality | ~12 min (PoW) to ~12 sec (PoS) | Near-instant (provisional), with L1 finality later |
Transaction Cost | $1-50 (typical during congestion) | < $0.01 (typical) |
Developer Complexity | High (build consensus, security) | Lower (focus on application logic) |
Data Availability | On-chain | Varies (on-chain for rollups, off-chain for some states) |
Examples | Ethereum, Solana, Bitcoin | Arbitrum, Optimism, Lightning Network |
ecosystem-usage
LAYER 1 (L1) BLOCKCHAINS
Ecosystem Usage in Web3 Gaming & DeFi
A Layer 1 blockchain is the foundational, base-level protocol that provides the core infrastructure for decentralized applications, including consensus, data availability, and transaction execution. Its design dictates the performance, security, and economic model for the entire ecosystem built upon it.
01
Core Infrastructure & Consensus
An L1 provides the fundamental state machine and consensus mechanism (e.g., Proof-of-Work, Proof-of-Stake) that secures the network and orders transactions. This layer defines the block time, finality, and security model, which are critical for application reliability. For example, Ethereum's transition to Proof-of-Stake (The Merge) fundamentally changed its security and issuance economics.
02
Smart Contract Execution Environment
Most modern L1s, like Ethereum, Solana, and Avalanche, include a virtual machine (e.g., EVM, SVM) that allows developers to deploy and execute smart contracts. This programmable layer is what enables complex logic for DeFi protocols (lending, DEXs) and gaming economies (NFTs, in-game assets). The L1's execution speed and cost (gas fees) directly impact user experience.
03
Native Token & Economic Security
Every L1 has a native cryptocurrency (e.g., ETH, SOL, AVAX) that serves multiple critical functions:
- Pay for transaction fees (gas)
- Secure the network via staking or mining rewards
- Governance in many Proof-of-Stake systems
- Store of value within the ecosystem. The token's market cap and distribution are key indicators of the network's security budget.
04
DeFi Settlement Layer
L1s act as the ultimate settlement layer for DeFi. High-value, security-critical transactions—like finalizing a large loan on Aave or executing a trade on Uniswap—are anchored on the L1. While Layer 2s handle scaling, the L1 ensures the canonical state and crypto-economic security of all assets and protocol logic, making its robustness non-negotiable.
05
Web3 Gaming Foundation
For blockchain gaming, the L1 provides the immutable ledger for player-owned assets (NFTs) and the trustless logic for game economies. Key considerations include:
- Low latency for in-game actions
- Low transaction costs for micro-transactions
- High throughput to support many concurrent players. Chains like Immutable X (built on StarkEx for Ethereum) and Solana are optimized for this use case.
06
Interoperability & Bridges
While operating independently, L1s increasingly connect via cross-chain bridges and interoperability protocols (e.g., IBC for Cosmos). This allows assets and data to move between ecosystems, but introduces security risks at the bridge layer. The L1's design (e.g., light client support) can facilitate more secure trust-minimized bridging.
security-considerations
LAYER 1 (L1) BLOCKCHAINS
Security & Decentralization Trade-offs
The foundational design of a Layer 1 blockchain involves inherent trade-offs between its core properties: security, decentralization, and scalability. Optimizing for one often requires concessions in another.
01
The Scalability Trilemma
The core framework for understanding L1 trade-offs. It posits that a blockchain can only optimize for two of the three following properties at any given time:
- Security: The network's resistance to attacks (e.g., 51% attacks).
- Decentralization: The distribution of nodes and validators.
- Scalability: The network's transaction throughput and speed.
For example, increasing block size for scalability can reduce decentralization by raising hardware requirements for validators.
02
Consensus Mechanisms
The protocol that determines how network participants agree on the state of the ledger, directly impacting security and decentralization.
- Proof of Work (PoW): Used by Bitcoin. High security through energy-intensive mining, but criticized for centralization of mining power and poor scalability.
- Proof of Stake (PoS): Used by Ethereum. More energy-efficient, improving scalability, but introduces different security considerations like long-range attacks and potential validator centralization based on stake.
03
Node & Validator Requirements
The hardware and stake requirements to participate in network consensus create a direct trade-off.
- High Requirements (e.g., expensive ASICs for PoW, large stake for PoS): Can increase security by making attacks costly, but reduce decentralization by limiting who can participate.
- Low Requirements (e.g., running a node on consumer hardware): Promotes decentralization but may make the network more vulnerable to Sybil attacks, compromising security.
04
Block Time & Size
Parameters that govern transaction throughput and network latency.
- Fast Block Times / Large Blocks: Improve user experience and scalability (TPS), but increase the rate of orphaned blocks and can lead to centralization, as only well-connected nodes with high bandwidth can keep up, harming decentralization.
- Slow Block Times / Small Blocks: Enhance security (more time for propagation and validation) and decentralization (lower bandwidth needs), but severely limit scalability and throughput.
05
Governance Models
How protocol upgrades and changes are decided reflects the decentralization vs. efficiency trade-off.
- Off-Chain Governance (e.g., Bitcoin BIPs, Ethereum EIPs): Relies on rough social consensus among developers, miners/validators, and users. Highly decentralized but can be slow and contentious, potentially hindering adaptability.
- On-Chain Governance (e.g., Tezos, Cosmos): Uses token-weighted voting for automatic protocol upgrades. More efficient and agile but can lead to centralization of power among large token holders ("whales").
06
Real-World Examples
How leading L1s embody these trade-offs in practice.
- Bitcoin: Prioritizes security and decentralization at the expense of scalability (slow, low TPS).
- Ethereum (Post-Merge): Aims for a balance, using PoS to improve scalability and efficiency while maintaining strong security; decentralization is an ongoing challenge with staking pools.
- Solana: Prioritizes extreme scalability (high TPS, low fees) by using a novel PoH consensus, accepting trade-offs in decentralization (high hardware requirements) and occasional security lapses (network outages).
DEBUNKED
Common Misconceptions About Layer 1
Layer 1 blockchains are foundational to Web3, but are often misunderstood. This section clarifies prevalent myths about their security, scalability, and core functions.
No, a Layer 1 blockchain is the underlying protocol and network, while a cryptocurrency is the native asset used to pay for transactions and secure that network. A Layer 1 (L1) is the base infrastructure—like Bitcoin or Ethereum—defining the rules for consensus, transaction processing, and data storage. The associated token (e.g., BTC, ETH) is a utility asset within that system, used for gas fees, staking, and governance. While the value of the token is often tied to the network's utility, they are distinct concepts: the blockchain is the railway, and the cryptocurrency is the fuel.
LAYER 1 (L1)
Frequently Asked Questions (FAQ)
Essential questions and answers about the foundational blockchains that form the bedrock of the Web3 ecosystem.
A Layer 1 (L1) blockchain is the foundational, base-level protocol of a decentralized network, responsible for its core consensus mechanism, native token, and fundamental security model. It is the primary settlement layer where transactions are finalized and recorded immutably on its own ledger. Prominent examples include Bitcoin, Ethereum, Solana, and Cardano. L1s are distinguished from Layer 2 (L2) scaling solutions, which are secondary networks built on top of L1s to enhance their transaction throughput and reduce costs while inheriting the L1's security. The key components of an L1 are its consensus algorithm (e.g., Proof-of-Work, Proof-of-Stake), its data structure (typically a blockchain or DAG), and its virtual machine (if it supports smart contracts).
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