A Layer 1 refers to a base blockchain, the foundational network that processes and settles its own transactions. Bitcoin and Ethereum are the best-known examples. When people talk about a blockchain main network, they usually mean its Layer 1.
Layer 1 networks handle the core functions: recording transactions, securing the network through their consensus mechanism, and maintaining the shared ledger. Everything built on top of them ultimately relies on this base layer for final settlement and security.
A common challenge for Layer 1 networks is balancing speed, cost, and decentralization, especially as usage grows. This is one reason additional solutions, known as Layer 2, are built on top to help with scale. Understanding Layer 1 gives you the foundation for understanding those.
Frequently Asked Questions
What are examples of Layer 1 blockchains?
Bitcoin and Ethereum are the most well-known. A Layer 1 is a base network that processes and settles its own transactions and secures itself through its consensus mechanism.
Why do Layer 1 networks face scaling challenges?
As usage grows, base layers must balance speed, cost, and decentralization. Handling more activity without sacrificing these is difficult, which is why Layer 2 solutions emerged.