Layer 1 (L1) is a base protocol that sets the rules for how the blockchain ecosystem works. A Layer 1 blockchain is the base system for transactions and validations and the network on which transactions are recorded. Bitcoin, Ethereum’s mainnet, Solana, and Avalanche are all Layer 1 blockchains.
Layer 1 blockchains rely on different consensus mechanisms, such as Bitcoin’s Proof of Work (PoW) or Ethereum’s Proof of Stake (PoS), and, depending on the type of blockchain, enable smart contract execution and the use of decentralized applications (dApps).
With the number of blockchain users increasing, it is not uncommon for Layer 1 systems’ scalability problems to become more pronounced, often resulting in slower transactions and higher fees. That’s why some L1 networks rely on Layer 2 solutions compatible with the mainchain, which enable transaction processing on a separate chain before completing them on the mainnet.
