Overview

Layer 1 is the foundation. It defines the consensus mechanism, the ledger structure, and the native token. All transactions on an L1 are settled directly on its own blockchain.

Examples

  • Bitcoin
  • Ethereum
  • Solana
  • Cardano

The Scalability Trilemma

L1s often struggle to balance three goals: Security, Decentralization, and Scalability. Most L1s prioritize security and decentralization, leading to the need for Layer 2 solutions to handle high transaction volumes.

Related Terms