The base blockchain protocol that processes and finalizes transactions on its own network. Examples include Bitcoin, Ethereum, Solana, and Avalanche. Layer 1 blockchains provide the fundamental security and consensus that other layers build upon.
Layer 1 (L1) refers to the base-level blockchain protocol that independently processes and finalizes transactions using its own consensus mechanism. Bitcoin, Ethereum, Solana, Avalanche, and Cardano are all layer-1 blockchains. They provide the foundational security, decentralization, and data availability that layer-2 solutions and applications build upon.
The layer-1 landscape represents a spectrum of design trade-offs. Bitcoin prioritizes security and decentralization with lower throughput. Ethereum focuses on smart contract capability with scalability delegated to L2s. Solana maximizes raw speed. Avalanche offers customizable subnets. These different approaches address the blockchain trilemma differently, and the competitive dynamics between L1s drive continuous innovation in blockchain technology.
There is no single best L1 — it depends on priorities. Bitcoin is best for store of value and security. Ethereum has the largest smart contract ecosystem. Solana offers the best speed and lowest costs. Each serves different use cases and communities.
Layer 1 is the base blockchain with its own consensus mechanism. Layer 2 is built on top of a layer 1, processing transactions off-chain and settling them on the L1 for security. L2s inherit L1 security while offering better speed and lower costs.
Different L1s optimize for different use cases and make different design trade-offs. No single blockchain can perfectly optimize for all properties simultaneously. Competition drives innovation, and different communities value different priorities.
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A decentralized blockchain platform that enables smart contracts and decentralized applications (dApps). Ethereum introduced programmable money and transitioned from proof of work to proof of stake with The Merge in 2022. Its native currency is Ether (ETH).
SolanaA high-performance layer-1 blockchain known for fast transaction speeds and low fees. Solana uses a unique proof-of-history consensus mechanism combined with proof of stake. It has become a popular platform for DeFi, NFTs, and memecoin trading.
BlockchainA distributed, immutable ledger technology that records transactions across a network of computers. Each block contains a cryptographic hash of the previous block, creating a chain that cannot be altered retroactively. Blockchains enable trustless, transparent record-keeping without a central authority.
ConsensusThe mechanism by which a distributed network of nodes agrees on the current state of the blockchain. Consensus protocols prevent double-spending and ensure all participants have the same version of the ledger. Different blockchains use different consensus mechanisms such as proof of work or proof of stake.
Layer 2A secondary protocol built on top of a layer-1 blockchain to improve scalability and reduce transaction costs. Layer 2 solutions process transactions off the main chain and periodically settle them on layer 1 for security. Examples include Arbitrum, Optimism, and the Lightning Network.