While it is easy to see how revolutionary blockchain is, the scalability trilemma of ensuring scalability, security, and decentralization simultaneously has always been a challenge for blockchains. However, Layer 1 blockchains have emerged as a potential solution to the blockchain trilemma. But what is Layer 1 blockchain, and how does it work? Read till the end to know how Layer 1 blockchain protocols are set to bring a new wave in the crypto world.
What is Layer 1 in Blockchain?
Before diving deep into Layer 1 blockchains, let’s first understand, ‘what is Layer 1 blockchain?’ A Layer 1 blockchain refers to a base layer of a blockchain network and its underlying infrastructure. It is a collection of solutions that enhance the base protocol in order to make the overall network much more scalable. Such blockchain is called Layer 1 because they are the primary networks in their ecosystem.
The primary feature of a public decentralized Layer 1 network is its consensus mechanism. Various consensus mechanisms offer varying levels of speed, security, and throughput. Layer 1 blockchains are the foundational blockchains that process and record transactions in their respective ecosystems. They include a native cryptocurrency that is typically used to pay fees and provide additional functionality. Popular networks such as Bitcoin, BNB Chain, or Ethereum use the Layer 1 blockchain.
Why Do You Require Layer 1 Blockchain?
Blockchain technology offers numerous advantages. These include increased security, improved recordkeeping, and hassle-free transactions. Scalability is critical for facilitating the addition of new applications on a blockchain network, as well as increased frequency of user activity. The various steps required for blockchain transactions frequently consume a significant amount of time and processing power.
However, the Layer 1 blockchain is designed specifically to address this transaction-capacity issue. It is capable of exponentially increasing the scaling limits of blockchain and making significant progress. A Layer 1 blockchain can assist in increasing a network’s capacity to meet new processing speed and power requirements.