Layer 1 (L1) blockchain is the basic community of the blockchain ecosystem. It operates independently with out counting on different chains for validation or execution, dealing with all the things from transaction processing to consensus to storing information by itself ledger.
The layer 1 blockchain, sometimes called the mainnet or fee layer, kinds the bottom flooring on which all different blockchain layers are constructed, together with sidechains and layer 2.
Layer 1 is unbiased when Layer 2 extends efficiency over an current community. They outline their very own guidelines, run their very own validators, and concern their very own native tokens. Bitcoin, Ethereum, Solana, Cardano, and Avalanche all match this description.
On this article, we'll have a look at the historical past and performance of Web3's foundational layer.
Inside Layer 1: Tips on how to Construct Layer 1
All L1 blockchains embody a number of core parts that make them each practical and safe.
- Community node: Hundreds of unbiased computer systems keep similar copies of the blockchain and broadcast information to one another. The decentralized nature prevents censorship and single factors of failure.
- Consensus layer: A rulebook for consensus. This determines how members resolve which transactions are legitimate and the way blocks are added to the chain.
- Execution layer: On high of programmable blockchains like Ethereum and Solana, this layer executes good contracts, or self-executing code that powers decentralized apps and automatic transactions.
- Native cryptocurrency: Every L1 has its personal coin that pays transaction charges, rewards validators, and helps on-chain governance. BTC secures Bitcoin, ETH powers Ethereum, and ADA powers Cardano.
How Layer 1 processes transactions
The flows are nearly the identical between totally different networks.
- verification: Transactions are checked to make sure they meet protocol guidelines and have correct signatures and balances.
- Block formation: Validated transactions are bundled into candidate blocks.
- consensus: The nodes agree on which block so as to add subsequent utilizing an algorithm chosen by the community.
- Finality: As soon as confirmed, the block turns into immutable. Stability and contract information are up to date through the community.
This cycle repeats constantly, 1000’s of occasions a day, with none central oversight.
Consensus mechanism: the guts of blockchain
The consensus mechanism defines how a blockchain reaches consensus, shaping its velocity, safety, and vitality profile. Numerous consensus mechanisms exist, however the primary ones are:
- proof of labor (Prisoner of Battle)– Launched by Bitcoin, PoW miners clear up cryptographic puzzles by computation. Though very safe, it consumes quite a lot of vitality and is proscribed to roughly 7 transactions per second (TPS).
- proof of stake (PoS)– Validators lock tokens as collateral to earn the precise to validate blocks. Change vitality use with financial incentives.
- Delegated Proof of Stake (DPoS)–This mannequin, utilized by Binance Good Chain and others, depends on a small, chosen set of validators to enhance effectivity, buying and selling off velocity and decentralization.
- proof of historical past (PoH)–Solana’s proprietary system timestamps transactions earlier than consensus, enabling 1000’s of TPS and sub-second block occasions.
Important Layer 1 Blockchain
Bitcoin (BTC) – Proof of Work: The primary and most safe blockchain. It makes use of energy-intensive mining to course of round 7 TPS and emphasizes decentralization and immutability over velocity.
Ethereum (Ethereum) – Proof of Stake: The most important programmable blockchain supporting good contracts, NFTs, and DeFi. After the 2022 merge, we lowered vitality utilization by over 99% whereas laying the inspiration for scalability with rollups and future sharding.
Solana (sol) – Proof of Historical past + PoS: Recognized for its excessive throughput and low charges, Solana timestamps transactions earlier than reaching consensus, reaching sub-second block occasions.
Cardano (ADA) – Ouroboros Proof of Stake: A research-driven blockchain that emphasizes formal verification and a layered structure to separate settlement and computation.
avalanche(Abax) – Avalanche Consensus: Makes use of stochastic sampling to shortly attain consensus. It supplies sub-second finality and helps customizable subnets for app-specific chains.
Binance Good Chain (BNB) – Delegated Proof of Stake: Operated by a restricted set of validators, BSC trades decentralization for efficiency, providing quick and low-cost transactions which are suitable with Ethereum’s instruments.
Timeline: Key Layer 1 Milestones
- January 2009: Bitcoin launches as the primary totally practical blockchain to show decentralized consensus by proof of labor.
- July 2015: Ethereum goes dwell, introducing programmable, Turing-complete good contracts to the blockchain ecosystem.
- September 2017: Cardano launches Byron mainnet, formalizes proof of stake utilizing the Ouroboros protocol and establishes a layered structure.
- September 2020: Avalanche launches mainnet and introduces a quick consensus mechanism and subnet framework for customizable chains.
- September 2022: Ethereum completes the merge, transferring from Proof of Work to Proof of Stake, lowering vitality consumption by over 99%.
- October 2023: Celestia is being launched as the primary modular blockchain centered on information availability and consensus separation.
- August 2025: Circle introduced Arc, a layer 1 centered on stablecoins, with a public testnet launching in October and mainnet anticipated in 2026.
Every blockchain goals to handle the identical basic problem: the blockchain trilemma.
Blockchain trilemma
Ethereum co-founder Vitalik Buterin coined the time period “blockchain trilemma” in 2017 to explain the problem of blockchain’s incapacity to concurrently maximize decentralization, scalability, and safety, forcing trade-offs between these three.
- security – Safety from manipulation and assaults.
- Scalability – Capability to effectively deal with giant volumes.
- decentralization – Distribution of management throughout many unbiased nodes.
Layer 1 scaling
Builders are regularly in search of methods to extend blockchain throughput with out compromising decentralization, a direct response to the blockchain trilemma.
- Sharding: This system divides the community into smaller components (shards) and processes information in parallel to scale back node workload and improve capability. Ethereum initially deliberate for 64 shards, however by late 2025 they’d shifted their focus to protodunk sharding and dank sharding. The improve was centered round information availability for layer 2 rollups fairly than full on-chain execution. Proto dank sharding (EIP-4844) introduces information blobs to enhance storage effectivity, however full dank sharding remains to be in improvement.
- Consensus optimization: Shifting from energy-intensive Proof of Work to Proof of Stake, like Ethereum's 2022 Merge, tremendously improves effectivity. Some new networks combine or adapt consensus fashions to steadiness velocity, value, and safety.
- Block parameters: Bigger blocks and shorter spacing enhance throughput, however on the threat of centralization. Bigger blocks require extra bandwidth and storage. Quicker blocks introduce synchronization points and the variety of orphaned blocks.
- Protocol improve: Bitcoin’s 2017 Segregated Witness (SegWit) is a traditional instance of direct layer 1 scaling. SegWit frees up block area by separating signature (“witness”) information from transaction information, permitting extra transactions per block with out growing dimension.
actual world purposes
Layer 1 blockchain has supported DeFi and powered lending, exchanges, and stablecoins by good contracts. Ethereum and Solana allow NFTs and gaming, bringing digital possession on-chain. It additionally improves provide chain transparency, secures digital identities, and allows the tokenization of real-world belongings akin to property and artwork.
Why are they nonetheless vital?
Layer 2 and sidechains may also help improve velocity, however Layer 1 stays the supply of reality. They supply a remaining decision, an unchanging historical past, and a shared belief for all that’s constructed on them.
Blockchain expertise has superior far past its inception in 2009, and efforts are usually not slowing down. In November, the Ethereum Basis introduced its subsequent main step: the Ethereum Interoperability Layer. This permits Ethereum L2s to immediately talk with different L2s.
As blockchain expertise evolves, from energy-intensive mining to modular, quantum-resistant architectures, Layer 1 blockchain continues to outline the infrastructure of the decentralized web.
