Layer-1 (L1) is the literal base of a blockchain network. It handles all transactions on its own, without needing to resort to another network. The “main” level does all the important work and is where everything starts. Transactions are recorded, checked, and finished on the core network, which is a Layer 1 chain. When you send Bitcoin to someone or exchange tokens on Ethereum, you’re using a Layer 1 network.

Layer 1 is where the “rules of the game” are set. It tells you how fast transactions are, how much they cost (in gas fees), and how decentralized the network really is. They are the network’s final source of truth. Higher layers, such Layer 2 solutions that are faster or cheaper, are created on top of them, which is why it’s called “Layer 1.” With no middleman needed, these chains give crypto the security and decentralization it needs to be trustless. But they often have to deal with the “blockchain trilemma,” which is finding a way to balance security, decentralization, and scalability, or being able to handle a lot of transactions rapidly without becoming stuck or becoming too expensive.

Here are a few examples of L1s. Bitcoin is the first L1, and it is the first one of its kind. It’s made to keep assets safe and keep their value, but it’s a little slower than modern chains. After that, Ethereum is the best-known L1 for smart contracts. It was the platform that let developers make apps (dApps) and NFTs right on top of its base code. Then there’s Solana, which has a new technical architecture that lets it do thousands of transactions per second at a very low cost, yet at a very high speed. Other popular ones include Cardano, Avalanche, or newer ones like Sui—each tweaking the recipe to solve speed or cost issues while staying as the base layer.

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Related Terms

Vertical Scaling

Vertical scaling in crypto is basically about beefing up or powering up one blockchain itself to be able to handle more activity. It’s also called “scaling up,” and it’s one of the easiest ways to speed up a network. It’s kind of like taking your old laptop and upgrading the processor, adding more RAM, and putting in a bigger hard drive so it runs smoother, instead of buying a whole new computer. This means the network will upgrade the base

Sovereign rollup

A sovereign rollup works as a blockchain scaling solution because it can function without using another blockchain for data availability or settlement purposes. The system operates through rollups which handle transactions outside the main system while it maintains control over its operational rules and governance system and execution methods without following base chain consensus requirements. Standard rollups provide a foundation for understanding sovereign rollups because they serve as the starting point. Standard rollups including optimistic rollups and zero knowledge rollups

Put Option

A put option is a safety net for your crypto. If you’re concerned about the market tanking while you sleep, put options are a way that you can protect it. It’s basically a contract that gives you the right to sell your crypto at a certain price, or strike price, no matter how low the actual market price drops. To get this protection, you pay a small, non-refundable fee called a premium. If the market crashes, you’re thrilled you have