Layer-1 blockchains are the muse of the crypto world. These networks deal with all the things on their very own: transaction validation, consensus, and record-keeping. Bitcoin and Ethereum are two well-known examples. They don’t depend on another blockchains to perform. On this information, you’ll study what Layer-1 means, the way it works, and why it issues.
What Is a Layer-1 Blockchain?
A Layer-1 blockchain is a self-sufficient distributed ledger. It handles all the things by itself chain. Transactions, consensus, and safety all occur at this degree. You don’t want another system to make it work.
Bitcoin and Ethereum are essentially the most well-known examples. These networks course of transactions immediately and preserve their very own information. Every has its personal coin and blockchain protocol. You’ll be able to construct decentralized functions on them, however the base layer stays in management.
Why Are They Known as “Layer-1”?
Consider blockchains like a stack of constructing blocks. The underside block is the muse. That’s Layer-1.
It’s known as “Layer-1” as a result of it’s the primary layer of the community. It holds all of the core features: confirming transactions, updating balances, and protecting the system protected. Every thing else, like apps or quicker instruments, builds on high of it.
We use layers as a result of it’s onerous to alter the bottom as soon as it’s constructed. As an alternative, builders add layers to improve efficiency with out breaking the core. Layer-2 networks are a great instance of that. They work with Layer-1 however don’t change it.
Why Do We Want Extra Than One Layer?
As a result of Layer-1 can’t do all the things directly. It’s safe and decentralized, however not very quick. And when too many customers flood the community, issues decelerate much more.
Bitcoin, for instance, handles solely about 7 transactions per second. That’s removed from sufficient to fulfill international demand. Visa, as compared, processes hundreds of transactions per second.
To repair this, builders launched different blockchain layers. These layers, like Layer-2 scalability options, run on high of the bottom chain. They improve scalability by processing extra transactions off-chain after which sending the outcomes again to Layer-1.
This setup retains the system safe and boosts efficiency. It additionally unlocks new options. Quick-paced apps like video games, micropayments, and buying and selling platforms all want velocity. These use instances don’t run properly on sluggish, foundational layers. That’s why Layer-2 exists—to increase the facility of Layer-1 with out altering its core.
Learn additionally: What Are Layer-0 Blockchains?
How Does a Layer-1 Blockchain Really Work?
A Layer-1 blockchain processes each transaction from begin to end. Right here’s what occurs:
Step 1: Sending a transaction
While you ship crypto, your pockets creates a digital message. This message is signed utilizing your personal key. That’s a part of what’s known as an uneven key pair—two linked keys: one personal, one public.
Your personal key proves you’re the proprietor. Your public key lets the community confirm your signature with out revealing your personal information. It’s how the blockchain stays each safe and open.
Your signed transaction is then broadcast to the community. It enters a ready space known as the mempool (reminiscence pool), the place it stays till validators decide it up.
Step 2: Validating the transaction
Validators test that your transaction follows the foundations. They affirm your signature is legitimate. They ensure you have sufficient funds and that you just’re not spending the identical crypto twice.
Totally different blockchains use totally different strategies to validate transactions. Bitcoin makes use of Proof of Work, and Ethereum now makes use of Proof of Stake. However in all instances, the community checks every transaction earlier than it strikes ahead.
Block producers typically deal with a number of transactions directly, bundling them right into a block. In case your transaction is legitimate, it’s able to be added.
Step 3: Including the transaction to the blockchain
As soon as a block is filled with legitimate transactions, it’s proposed to the community. The block goes by way of one ultimate test. Then, the community provides it to the chain.
Every new block hyperlinks to the final one. That’s what varieties the “chain” in blockchain. The entire course of is safe and everlasting.
On Bitcoin, this occurs each 10 minutes. On Ethereum, it takes about 12 seconds. As soon as your transaction is in a confirmed block, it’s ultimate. Nobody can change it.
Key Options of Layer-1 Blockchains
Decentralization
As a result of the blockchain is a distributed ledger, no single server or authority holds all the facility. As an alternative, hundreds of computer systems around the globe preserve the community operating.
These computer systems are known as nodes. Every one shops a full copy of the blockchain. Collectively, they ensure that everybody sees the identical model of the ledger.
Decentralization means nobody can shut the community down. It additionally means you don’t must belief a intermediary. The principles are constructed into the code, and each consumer performs a component in protecting issues truthful.
Safety
Safety is certainly one of Layer-1’s largest strengths. As soon as a transaction is confirmed, it’s almost not possible to reverse. That’s as a result of the entire community agrees on the information.
Every block is linked with a cryptographic code known as a hash. If somebody tries to alter a previous transaction, it breaks the hyperlink. Different nodes spot the change and reject it.
Proof of Work and Proof of Stake each add extra safety. In Bitcoin, altering historical past would price tens of millions of {dollars} in electrical energy. In Ethereum, an attacker would want to regulate many of the staked cash. In each instances, it’s simply not definitely worth the effort.
Scalability (and the Scalability Trilemma)
Scalability means dealing with extra transactions, quicker. And it’s the place many Layer-1s wrestle.
Bitcoin handles about 7 transactions per second. Ethereum manages 15 to 30. That’s not sufficient when tens of millions of customers take part.
Some networks like Solana purpose a lot increased. Underneath excellent circumstances, Solana can course of 50,000 to 65,000 transactions per second. However excessive velocity comes with trade-offs.
This is called the blockchain trilemma: you possibly can’t maximize velocity, safety, and decentralization suddenly. Enhance one, and also you typically weaken the others.
That’s why many Layer-1s follow being safe and decentralized. They go away the velocity upgrades to Layer-2 scaling options.
Fashionable Examples of Layer-1 Blockchains
Not all Layer-1s are the identical. Some are sluggish and tremendous safe. Others are quick and constructed for speed-hungry apps. Let’s stroll by way of 5 well-known Layer-1 blockchains and what makes every one stand out.
Bitcoin (BTC)
Bitcoin was the primary profitable use of blockchain know-how. It launched in 2009 and kicked off the complete crypto motion. Individuals primarily use it to retailer worth and make peer-to-peer funds.
It runs on Proof of Work, the place miners compete to safe the Bitcoin community. That makes Bitcoin extremely safe, but additionally pretty sluggish—it handles about 7 transactions per second, and every block takes round 10 minutes.
Bitcoin operates as its solely layer, with out counting on different networks for safety or validation. That’s why it’s typically known as “digital gold”—nice for holding, not for day by day purchases. Nonetheless, it stays essentially the most trusted title in crypto.
Ethereum (ETH)
Ethereum got here out in 2015 and launched one thing new—good contracts. These let individuals construct decentralized apps (dApps) immediately on the blockchain.
It began with Proof of Work however switched to Proof of Stake in 2022. That one change lower Ethereum’s power use by over 99%.
Learn additionally: What Is The Merge?
Ethereum processes about 15–30 transactions per second. It’s not the quickest, and it could get dear throughout busy instances. Nevertheless it powers many of the crypto apps you’ve heard of—DeFi platforms, NFT marketplaces, and extra. If Bitcoin is digital gold, Ethereum is the complete app retailer.
Solana (SOL)
Solana is constructed for velocity. It launched in 2020 and makes use of a novel combo of Proof of Stake and Proof of Historical past consensus mechanisms. That helps it hit as much as 65,000 transactions per second within the best-case situation.
Transactions are quick and low cost—we’re speaking fractions of a cent and block instances below a second. That’s why you see so many video games and NFT initiatives popping up on Solana.
Nevertheless, Solana had a couple of outages, and operating a validator node takes critical {hardware}. However if you would like a high-speed blockchain, Solana is a robust contender.
Cardano (ADA)
Cardano takes a extra cautious method. It launched in 2017 and was constructed from the bottom up utilizing tutorial analysis and peer-reviewed code.
It runs on Ouroboros, a kind of Proof of Stake that’s energy-efficient and safe. Cardano helps good contracts and retains getting upgrades by way of a phased rollout.
It handles dozens of transactions per second proper now, however future upgrades like Hydra purpose to scale that up. Individuals typically select Cardano for socially impactful initiatives—like digital IDs and training instruments in creating areas.
Avalanche (AVAX)
Avalanche is a versatile blockchain platform constructed for velocity. It went dwell in 2020 and makes use of a particular sort of Proof of Stake that lets it execute transactions in about one second.
As an alternative of 1 large chain, Avalanche has three: one for property, one for good contracts, and one for coordination. That helps it deal with hundreds of transactions per second with out getting slowed down.
You’ll be able to even create your individual subnet—mainly a mini-blockchain with its personal guidelines. That’s why Avalanche is well-liked with builders constructing video games, monetary instruments, and enterprise apps.
Layer-1 vs. Layer-2: What’s the Distinction?
Layer-1 and Layer-2 blockchains work collectively. However they resolve totally different issues. Layer-1 is the bottom. Layer-2 builds on high of it to enhance velocity, charges, and consumer expertise.
Let’s break down the distinction throughout 5 key options.
Learn additionally: What Is Layer 2 in Blockchain?
Pace
Layer-1 networks might be sluggish. Bitcoin takes about 10 minutes to substantiate a block. Ethereum does it quicker—round 12 seconds—but it surely nonetheless will get congested.
To enhance transaction speeds, builders use blockchain scaling options like Layer-2 networks. These options course of transactions off the primary chain and solely settle the ultimate end result on Layer-1. Meaning near-instant funds typically.
Charges
Layer-1 can get costly. When the community is busy, customers pay extra to get their transaction by way of. On Ethereum, charges can shoot as much as $20, $50, or much more throughout peak demand.
Layer-2 helps with that. It bundles many transactions into one and settles them on the primary chain. That retains charges low—typically only a few cents.
Decentralisation
Layer-1 is normally extra decentralized. 1000’s of unbiased nodes preserve the community operating. That makes it onerous to censor or shut down.
Layer-2 might use fewer nodes or particular operators to spice up efficiency. That may imply barely much less decentralization—however the core safety nonetheless comes from the Layer-1 beneath.
Safety
Layer-1 handles its personal safety. It depends on cryptographic guidelines and a consensus algorithm like Proof of Work or Proof of Stake. As soon as a transaction is confirmed, it’s locked in.
Layer-2 borrows its safety from Layer-1. It sends proof again to the primary chain, which retains everybody sincere. But when there’s a bug within the bridge or contract, customers may face some threat.
Use Instances
Layer-1 is your base layer. You utilize it for giant transactions, long-term holdings, or something that wants robust safety.
Layer-2 is healthier for day-to-day stuff. Assume quick trades, video games, or sending tiny funds. It’s constructed to make crypto smoother and cheaper with out messing with the muse.
Issues of Layer-1 Blockchains
Layer-1 networks are highly effective, however they’re not good. As extra individuals use them, three large points preserve displaying up: slowdowns, excessive charges, and power use.
Community Congestion
Layer-1 blockchains can solely deal with a lot directly. The Bitcoin blockchain processes round 7 transactions per second. Ethereum manages between 15 and 30. That’s fantastic when issues are quiet. However when the community will get busy, all the things slows down.
Transactions pile up within the mempool, ready to be included within the subsequent block. That may imply lengthy delays. In some instances, a easy switch may take minutes and even hours.
This will get worse throughout market surges, NFT drops, or large DeFi occasions. The community can’t scale quick sufficient to maintain up. That’s why builders began constructing Layer-2 options—to deal with any overflow.
Excessive Transaction Charges
When extra individuals need to use the community, charges go up. It’s a bidding struggle. The very best bidder will get their transaction processed first.
On Ethereum, charges can spike to $50 or extra throughout busy durations. Even easy duties like sending tokens or minting NFTs can grow to be too costly for normal customers.
Bitcoin has seen this too. In late 2017, throughout a bull run, common transaction charges jumped above $30. It priced out small customers and pushed them to attend—or use one other community.
Vitality Consumption
Some Layer-1s use a number of power. Bitcoin is the largest instance. Its Proof of Work system depends on hundreds of miners fixing puzzles. That makes use of extra electrical energy than many international locations.
This setup makes Bitcoin very safe. Nevertheless it additionally raises environmental issues. Critics argue that it’s not sustainable long run.
That’s why many more recent blockchains now use Proof of Stake. Ethereum made the swap in 2022 and lower its power use by greater than 99%. Different chains like Solana and Cardano had been constructed to be energy-efficient from day one.
The Way forward for Layer-1 Blockchains
Layer-1 blockchains are getting upgrades. Quick.
Ethereum plans so as to add sharding. This can break up the community into smaller elements to deal with extra transactions directly. It’s one approach to scale with out shedding safety.
Different initiatives are exploring modular designs. Meaning letting totally different layers deal with totally different jobs—like one for information, one for execution, and one for safety.
We’re additionally beginning to see extra chains targeted on power effectivity. Proof of Stake is changing into the brand new commonplace because it cuts energy use with out weakening belief.
Layer-1 gained’t disappear – it’ll simply preserve evolving to help greater, quicker, and extra versatile networks. As Layer-1s proceed to evolve, we’ll see extra linked blockchain ecosystems—the place a number of networks work collectively, share information, and develop facet by facet.
FAQ
Is Bitcoin a layer-1 blockchain?
Sure. Bitcoin is the unique Layer-1 blockchain. It runs by itself community, makes use of its personal guidelines, and doesn’t depend on another blockchain to perform. All transactions occur immediately on the Bitcoin ledger. It’s a base layer—easy, safe, and decentralized. Whereas different instruments just like the Lightning Community construct on high of it, Bitcoin itself stays on the core as the muse.
What number of Layer 1 blockchains are there?
There’s no precise quantity. New Layer-1s launch on a regular basis.
Why do some Layer-1 blockchains have excessive transaction charges?
Charges rise when demand is excessive. On Layer-1, customers compete to get their transactions included within the subsequent block. That creates a price public sale—whoever pays extra, will get in first. That’s why when the community is congested, fuel charges spike. Ethereum and Bitcoin each expertise this typically, and restricted throughput and excessive visitors are the primary causes. Newer Layer-1s attempt to preserve charges low with higher scalability.
How do I do know if a crypto undertaking is Layer-1?
Examine if it has its personal blockchain. A Layer-1 undertaking runs its personal community, with unbiased nodes, a local token, and a full transaction historical past. It doesn’t depend on one other chain for consensus or safety.
For instance, Bitcoin and Ethereum are Layer-1s. In the meantime, a token constructed on Ethereum (like USDC or Uniswap) shouldn’t be. It lives on Ethereum’s Layer-1 however doesn’t run by itself.
Can one blockchain be each Layer-1 and Layer-2?
Not precisely, but it surely is determined by the way it’s used. A blockchain can act as Layer-1 for its personal community whereas working like a Layer-2 for one more.
For instance, Polygon has its personal chain (Layer-1), however individuals name it Layer-2 as a result of it helps scale Ethereum. Some Polkadot parachains are comparable—unbiased, however linked to a bigger system. It’s all about context.
What occurs if a Layer-1 blockchain stops working?
If that occurs, the complete blockchain community freezes. No new transactions might be processed. Your funds are nonetheless there, however you possibly can’t ship or obtain something till the chain comes again on-line.
Solana has had a couple of outages like this—and sure, loads of memes had been made due to it. However as of 2025, the community appears way more secure. Most outages get mounted with a patch and a coordinated restart. An entire failure, although, would go away property and apps caught—presumably ceaselessly.
Disclaimer: Please word that the contents of this text usually are not monetary or investing recommendation. The knowledge supplied on this article is the creator’s opinion solely and shouldn’t be thought of as providing buying and selling or investing suggestions. We don’t make any warranties in regards to the completeness, reliability and accuracy of this info. The cryptocurrency market suffers from excessive volatility and occasional arbitrary actions. Any investor, dealer, or common crypto customers ought to analysis a number of viewpoints and be conversant in all native rules earlier than committing to an funding.
