What Is Layer 1?
Also known as: L1, Base Layer, Mainchain, First Layer
In short
Layer 1 is a base blockchain that validates and finalizes transactions on its own network and secures itself with its own consensus mechanism; Bitcoin, Ethereum and Solana are examples of such networks.
A Layer 1 network handles all of the core tasks itself, such as block production, transaction validation, data storage and settlement. The network's security rests on miners' computing power in Proof of Work and on the collateral locked by validators in Proof of Stake. Transaction fees are usually paid in the network's native coin; BTC plays this role on Bitcoin and ETH on Ethereum.
The main limitation of Layer 1 networks is scalability. Because nodes in the network validate transactions one by one, the number of transactions that can be processed per second is limited and fees rise during busy periods. In this dilemma, known as the scalability trilemma, increasing capacity often requires giving up some decentralization or security.
There are two basic approaches to this problem: improving the main chain itself (by changing block parameters or using methods such as sharding) or moving transactions to Layer 2 solutions built on top of the main chain. Ethereum has taken the second path, positioning itself as a secure settlement and data layer for rollups.
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