What is a Layer-1 Blockchain?

In a nutshell, layer-1 blockchain refers to the primary network that stores information about a cryptocurrency. This layer includes the Bitcoin, Ethereum, and other popular cryptocurrencies. In contrast, layer-2 blockchains are developed to solve certain scaling problems. This article will briefly discuss both types of blockchains, and explain why they are important. In addition, you will learn how layer-1 and layer-2 blockchain solutions differ. Here, we’ll look at two of the most popular layer-1 solutions.

Layer-1 is the blockchain used by Ethereum. It uses the Proof of Stake consensus mechanism to replace the more resource-intensive process of mining. The proof-of-stake algorithm requires validators to stake ETH, which creates a strong incentive for them to contribute to network security. The network is currently in the process of transitioning from PoW to PoS, but is expected to do so soon. Although these are just two examples, the advantages of layer-1 scaling are obvious.

While some developers are wary about the security and scalability issues inherent in layer-one blockchains, many experts believe that the future of cryptocurrency is multi-chain. The development of new technologies like smart contracts and programmable smart contracts have been fuelled by the demand for new forms of payment. A layer-1 blockchain can be both decentralized and scalable, and is an essential step toward the creation of a truly decentralized and secure system.