Layer 1 blockchain is the foundational layer of a blockchain network, providing the essential infrastructure for transaction processing and network governance.

Understanding Layer 1 Blockchain

At its core, Layer 1 refers to the fundamental infrastructure of a blockchain network. It’s the bedrock that supports all subsequent activities and innovations. Imagine it as the digital ‘ground floor’—the platform on which everything else is constructed.

Layer 1 Blockchain Examples

Bitcoin stands as a prime example of a Layer 1 blockchain. It’s designed for transaction security and immutability. Miners solve complex problems to add new blocks to the chain, while other nodes validate these blocks. This process is central to maintaining a secure, decentralized network.

Challenges Facing Layer 1 Blockchains

Despite their importance, Layer 1 blockchains face notable challenges—scalability being a significant one. As transaction volumes grow, these networks often struggle to keep pace with the demands of processing them quickly. This is a stark contrast to centralized systems like Visa, which can handle a much higher number of transactions per second.

To overcome these limitations, layer 1 networks may implement scaling solutions such as layer 2 blockchains or rollups. These strategies aim to boost transaction speeds and reduce costs, thereby improving network performance.