What Is a Layer-1 Blockchain?
A layer-1 blockchain refers to the underlying blockchain protocol that serves as the fundamental infrastructure of a network.
It is a distributed ledger technology (DLT) designed to securely record transactions on a public, immutable, and trustless ledger.
Exploring the Role of Layer-1 Blockchains
Layer-1 blockchains are the basic form of blockchain and serve as the foundation for all other layers.
They are often known as the “core” or “foundation” of the blockchain network since they provide the underlying infrastructure for applications and protocols built on top.
These blockchains directly handle maintaining the distributed ledger, validating transactions, and ensuring network security against malicious entities.
Ensuring Trust and Immutability
At the heart of a layer-1 blockchain is a consensus mechanism responsible for validating and recording transactions on the ledger.
It ensures the immutability and trustworthiness of the ledger for all network participants.
Common consensus mechanisms used in layer-1 blockchain networks include proof-of-work (PoW), Proof-of-Stake (PoS), and delegated proof-of-stake (DPoS).
Layer-1 blockchain technology serves as the foundation for major public blockchain networks such as Bitcoin and Ethereum.
It also underlies many decentralized applications (DApps) and protocols.
Examples of Layer-1 Blockchain
- Bitcoin: Bitcoin is a decentralized digital currency and peer-to-peer payment system. It is the first and most widely used layer-1 blockchain. Transactions on the Bitcoin network are recorded and verified by miners, who are rewarded with newly created Bitcoins upon successful transaction validation.
- Ethereum: Ethereum is an open-source, public blockchain-based distributed computing platform. It enables users to develop and deploy decentralized applications and smart contracts. Ethereum’s cryptocurrency, Ether, has become the world’s second-largest blockchain platform by market capitalization.
Layer-1 and Layer-2 Blockchains
Layer-1 blockchains form the foundational layer of blockchain infrastructure.
They handle the distributed ledger’s consensus protocol, transaction processing, and maintenance.
Layer-1 blockchains are typically permissionless, allowing anyone to interact with the blockchain and become a node in the network.
Layer-2 blockchains, on the other hand, are scaling solutions built on top of layer-1 blockchains.
They aim to enhance scalability and efficiency and are generally more cost-effective since they leverage the underlying layer-1 blockchain as their base layer.