Crypto glossary

Layer 1 (L1)

Definition

A layer 1 is a base blockchain, such as Bitcoin, Ethereum or Solana, that processes and finalizes transactions on its own network with its own consensus.

A layer 1 network has its own validators or miners, its own consensus mechanism and its own native token used to pay fees, such as BTC, ETH or SOL. It is the final source of truth: once a transaction is settled on the base layer, everything built on top relies on that record.

Layer 1 designs balance decentralization, security and scalability, a tension often called the blockchain trilemma. Bitcoin and Ethereum prioritize security and decentralization and keep base-layer throughput limited, while chains such as Solana aim for higher speed at the cost of heavier hardware requirements for node operators.

To scale without weakening the base chain, many ecosystems push activity to layer 2 networks that settle back to the layer 1. Competing layer 1s are usually compared on fees, speed, developer activity and how many independent validators secure them.

Example

When the Arbitrum rollup posts its transaction data to Ethereum, Ethereum acts as the layer 1 that guarantees those transactions cannot be altered.

Related terms

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