What is Layer 1 blockchain?
AltCryptoGems
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Layer 1, also known as L1 refers to the foundational network, for example, Ethereum, Avalanche and Bitcoin would be referred to as Layer 1’s.
A Layer 1 Blockchain is a necessity for any network to function. L1’s all have specific tasks & features, such as:
The security is dependent on the consensus mechanism that blockchains use. Take Bitcoin for example which uses Proof-of-Work (PoW) and Polygon which is a Proof-of-Stake (PoS).
To read more on consensus mechanisms, head over to the guides on our website.
This process is done to ensure that any transaction made on the network cannot be altered or undone. Even though transactions/trades can be done on subchains or other layers, the transaction still has to be finalised on the Layer 1 blockchain.
Blocks are data structures which store & record transactional data permanently. Blocks are produced by either Miners (PoW) or Validators (PoS) and recorded on the Layer 1 blockchain.
All Layer 1 blockchains require a native currency to use as a form of transaction fees or rewards for mining/validating blocks. For example, Bitcoin – $BTC, Avalanche – $AVAX, BNB Chain – $BNB.
In the future, we’ll cover what Layer 2 is as the surge in Layer 2 #Ethereum scaling solutions is rising. #Arbitrum & #Optimism have seen historic growth in the last few months, so it’s important we understand the technology behind it.
Stay tuned!
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