Layer1Blockchains

Layer1 blockchains are the fundamental blockchains that provide the base network, security, and settlement layer for a digital economy. They maintain a shared ledger where transactions are validated by consensus, and finality is achieved according to the protocol. Each Layer1 has its own native cryptocurrency and accounts for its own economic model.

Layer1s vary in features: some support smart contracts and programmable logic, enabling decentralized applications, while others focus on simple digital cash or value transfer. Examples include Bitcoin (store of value and settlement), Ethereum (programmable smart contracts and DeFi), Solana, Cardano, Avalanche, Algorand, and Tezos.

Consensus mechanisms differ across Layer1s. Bitcoin uses proof of work; Ethereum transitioned to proof of stake; others use variants such as delegated proof of stake, BFT-style algorithms, or novel time-stamping schemes. These choices influence security assumptions, energy use, transaction throughput, and finality time. Layer1s also address scalability and interoperability through design choices like sharding, parallel execution, consensus optimizations, and cross-chain messaging.

In practice, Layer1s host decentralized finance, non-fungible tokens, and decentralized applications, supported by developer ecosystems and tooling. They compete and collaborate through interoperable bridges and multi-chain ecosystems, with some projects focusing on high throughput, low latency, or privacy. Layer2 solutions and sidechains build atop Layer1s to increase scalability and efficiency while preserving the base layer's security model.

Layer1 blockchains form the foundational layer of most public blockchain ecosystems, defining security, governance, and programmability that underpin broader blockchain activity.