What is a Layer-1 (L1) Blockchain? L1 Problems & Future
Layer-1 blockchains are the inspiration of the crypto world. These networks deal with all the pieces on their very own: transaction validation, consensus, and record-keeping. Bitcoin and Ethereum are two well-known examples. They don’t depend on every other blockchains to operate. 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 pieces by itself chain. Transactions, consensus, and safety all occur at this stage. You don’t want every other system to make it work.
Bitcoin and Ethereum are probably the most well-known examples. These networks course of transactions straight and maintain their very own information. Every has its personal coin and blockchain protocol. You possibly can construct decentralized purposes on them, however the base layer stays in management.
Why Are They Referred to as “Layer-1”?
Consider blockchains like a stack of constructing blocks. The underside block is the inspiration. 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 maintaining the system protected. Every little thing else, like apps or quicker instruments, builds on prime of it.
We use layers as a result of it’s laborious to vary 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 exchange it.
Why Do We Want Extra Than One Layer?
As a result of Layer-1 can’t do all the pieces 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, compared, processes 1000’s of transactions per second.
To repair this, builders launched different blockchain layers. These layers, like Layer-2 scalability options, run on prime 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 pace. These use circumstances don’t run nicely on gradual, 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
Whenever 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 examine that your transaction follows the foundations. They verify your signature is legitimate. They be sure 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 circumstances, 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 stuffed with legitimate transactions, it’s proposed to the community. The block goes by one last examine. 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 every 10 minutes. On Ethereum, it takes about 12 seconds. As soon as your transaction is in a confirmed block, it’s last. 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, 1000’s of computer systems world wide maintain the community operating.
These computer systems are known as nodes. Each shops a full copy of the blockchain. Collectively, they be certain everybody sees the identical model of the ledger.
Decentralization means nobody can shut the community down. It additionally means you don’t need to belief a intermediary. The foundations are constructed into the code, and each consumer performs an element in maintaining issues honest.
Safety
Safety is one among Layer-1’s largest strengths. As soon as a transaction is confirmed, it’s almost unimaginable 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 vary 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 value tens of millions of {dollars} in electrical energy. In Ethereum, an attacker would wish to manage many of the staked cash. In each circumstances, 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 intention a lot greater. Beneath splendid situations, Solana can course of 50,000 to 65,000 transactions per second. However excessive pace comes with trade-offs.
This is named the blockchain trilemma: you’ll be able to’t maximize pace, safety, and decentralization . Enhance one, and also you typically weaken the others.
That’s why many Layer-1s keep on with being safe and decentralized. They depart the pace upgrades to Layer-2 scaling options.
Well-liked Examples of Layer-1 Blockchains
Not all Layer-1s are the identical. Some are gradual and tremendous safe. Others are quick and constructed for speed-hungry apps. Let’s stroll by 5 well-known Layer-1 blockchains and what makes each stand out.
Bitcoin (BTC)
Bitcoin was the primary profitable use of blockchain know-how. It launched in 2009 and kicked off all the crypto motion. Folks 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 gradual—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 probably 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) straight on the blockchain.
It began with Proof of Work however switched to Proof of Stake in 2022. That one change lower Ethereum’s vitality 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 actually get dear throughout busy occasions. But it surely powers many of the crypto apps you’ve heard of—DeFi platforms, NFT marketplaces, and extra. If Bitcoin is digital gold, Ethereum is all the app retailer.
Solana (SOL)
Solana is constructed for pace. It launched in 2020 and makes use of a singular 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 occasions beneath a second. That’s why you see so many video games and NFT tasks popping up on Solana.
Nonetheless, Solana had a number of outages, and operating a validator node takes critical {hardware}. However if you need a high-speed blockchain, Solana is a powerful 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 a phased rollout.
It handles dozens of transactions per second proper now, however future upgrades like Hydra intention to scale that up. Folks typically select Cardano for socially impactful tasks—like digital IDs and schooling instruments in growing areas.
Avalanche (AVAX)
Avalanche is a versatile blockchain platform constructed for pace. It went stay in 2020 and makes use of a particular kind 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 belongings, one for good contracts, and one for coordination. That helps it deal with 1000’s of transactions per second with out getting slowed down.
You possibly can even create your personal subnet—principally a mini-blockchain with its personal guidelines. That’s why Avalanche is common 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 remedy totally different issues. Layer-1 is the bottom. Layer-2 builds on prime of it to enhance pace, 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 will be gradual. Bitcoin takes about 10 minutes to verify 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 principle chain and solely settle the ultimate outcome on Layer-1. Meaning near-instant funds usually.
Charges
Layer-1 can get costly. When the community is busy, customers pay extra to get their transaction by. 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 principle chain. That retains charges low—typically only a few cents.
Decentralisation
Layer-1 is often extra decentralized. 1000’s of impartial nodes maintain the community operating. That makes it laborious 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 principle chain, which retains everybody trustworthy. 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 large transactions, long-term holdings, or something that wants robust safety.
Layer-2 is best 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 inspiration.
Issues of Layer-1 Blockchains
Layer-1 networks are highly effective, however they’re not excellent. As extra individuals use them, three large points maintain displaying up: slowdowns, excessive charges, and vitality 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 high-quality when issues are quiet. However when the community will get busy, all the pieces slows down.
Transactions pile up within the mempool, ready to be included within the subsequent block. That may imply lengthy delays. In some circumstances, 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 warfare. The best bidder will get their transaction processed first.
On Ethereum, fees can spike to $50 or extra throughout busy intervals. Even easy duties like sending tokens or minting NFTs can develop into 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 variety of vitality. Bitcoin is the largest instance. Its Proof of Work system depends on 1000’s of miners fixing puzzles. That makes use of extra electrical energy than many international locations.
This setup makes Bitcoin very safe. But it surely additionally raises environmental considerations. Critics argue that it’s not sustainable long run.
That’s why many more moderen blockchains now use Proof of Stake. Ethereum made the swap in 2022 and lower its vitality use by more than 99%. Different chains like Solana and Cardano have 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 components to deal with extra transactions directly. It’s one strategy to scale with out shedding safety.
Different tasks 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 centered on vitality effectivity. Proof of Stake is changing into the brand new commonplace because it cuts energy use with out weakening belief.
Layer-1 received’t disappear – it is going to simply maintain evolving to assist larger, 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 every other blockchain to operate. All transactions occur straight on the Bitcoin ledger. It’s a base layer—easy, safe, and decentralized. Whereas different instruments just like the Lightning Community construct on prime of it, Bitcoin itself stays on the core as the inspiration.
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 charge public sale—whoever pays extra, will get in first. That’s why when the community is congested, gasoline charges spike. Ethereum and Bitcoin each expertise this typically, and restricted throughput and excessive visitors are the principle causes. Newer Layer-1s attempt to maintain charges low with higher scalability.
How do I do know if a crypto undertaking is Layer-1?
Test if it has its personal blockchain. A Layer-1 undertaking runs its personal community, with impartial 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) is just not. 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 will depend on the way it’s used. A blockchain can act as Layer-1 for its personal community whereas working like a Layer-2 for an additional.
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 related—impartial, however linked to a bigger system. It’s all about context.
What occurs if a Layer-1 blockchain stops working?
If that occurs, all the blockchain community freezes. No new transactions will be processed. Your funds are nonetheless there, however you’ll be able to’t ship or obtain something till the chain comes again on-line.
Solana has had a number of outages like this—and sure, loads of memes have been made due to it. However as of 2025, the community appears far more steady. Most outages get fastened with a patch and a coordinated restart. An entire failure, although, would go away belongings and apps caught—probably perpetually.
Disclaimer: Please observe that the contents of this text will not be monetary or investing recommendation. The knowledge offered 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 data. 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 accustomed to all native rules earlier than committing to an funding.
