Did you hear the term “Layer 1” while you were deep in the two hundred fifty-five pages of meticulously detailed instructions about cryptocurrency? Sounds complicated, right?
But it’s one of those fundamentals that actually makes everything else make sense. So let’s cut through all the technical lingo and explain it the way you would to a friend.
Layer 1 = The base of blockchain
Imagine Layer 1 as the main freeway where all the traffic flows.
It’s the base network — the primary, original blockchain where all transactions, smart contracts, and everything else occur.
Examples:
- Bitcoin (BTC)
- Ethereum (ETH)
- Solana (SOL)
- Avalanche (AVAX)
These are Layer 1s, as in: they don’t need another chain to function. They are the chain.
What happens on Layer 1?
Everything.
- Transactions
- Smart contracts
- Network security and consensus
When you send ETH from one wallet to another, that transaction is confirmed on Ethereum — a Layer 1 blockchain.
But things start to get interesting here…
The problem with Layer 1s
As crypto became common, networks like Ethereum began getting stuck.
The more users there are, the more transactions there are — and that means higher gas fees and longer wait times.
Imagine trying to drive on a one-lane highway during rush hour.
It works—but just about.
That is where the Layer 2s come in (you can read our guide to that here).
But let us return to Layer 1.
How Do Layer 1s Work?
Each Layer 1 blockchain possesses its own model of consensus to stay safe and confirm transactions:
- Proof of Work (PoW): Like Bitcoin. Miners compete to answer puzzles.
- Proof of Stake (PoS): Like Ethereum post-merge. Validators stake coins to confirm blocks.
- Other models: Certain chains, like Solana, use hybrid or custom systems.
This affects domains such as energy consumption, velocity, and decentralization.
Why should you care?
You are:
- An investor → Layer 1 tokens (e.g., ETH, BTC, SOL) form the backbone of the ecosystem.
- A builder → This is where you start. Apps and protocols are natively deployed onto these chains.
- A user → Your wallet is here. Your assets, NFTs, and activity are tied to Layer 1.
Knowing the chain you’re on means knowing its advantages, fees, and limitations.
Real examples
- Bitcoin → Gold in digital form. A light and secure Layer 1 with minimal smart contract functionality.
- Ethereum → The first smart contract platform. Host to DeFi, NFTs, and DAOs.
- Solana → Cheap and quick, built for high-performance dApps.
- Avalanche → Scalable and sustainable with subnets for flexibility.
They each have their own vision — and compromises.
The backbone of blockchain
Layer 1 is the backbone of the blockchain. Without it, nothing else works.
Whether you’re minting an NFT, joining a DAO, or staking some tokens, you’re doing it on Layer 1
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