Layer 1 Innovations: Reshaping Blockchains From The Ground Up
Layer 1 blockchains are the fundamental building blocks of the decentralized world, the infrastructure upon which everything else is built. Understanding them is crucial for anyone venturing into the world of cryptocurrencies, decentralized finance (DeFi), or blockchain Technology in general. This article delves into the intricacies of Layer 1, exploring its architecture, functionality, key characteristics, and future trends.
What is Layer 1?
Defining the Core Blockchain
Layer 1 (L1) refers to the base blockchain network. This is the foundational layer that processes and finalizes transactions directly on its own ledger. Examples of prominent Layer 1 blockchains include Bitcoin, Ethereum, Solana, and Cardano. They establish the basic rules and consensus mechanisms governing the entire ecos...