Glossary · L
Layer 1 (L1)
The base blockchain layer — the main chain itself (Ethereum, Bitcoin, Solana). Layer 1 handles final settlement and security but often has limited throughput and high transaction costs. All transactions ultimately settle on L1.
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How Layer 1 works in practice
A Layer 1 is a base blockchain that settles its own transactions and provides its own security — Ethereum, Bitcoin, Solana. Everything built on top ultimately inherits whatever guarantees the L1 provides.
Worked example
An L1 validates transactions through its own consensus. An L2 posts its data or proofs back to an L1 and relies on that L1 for final settlement, which is precisely what makes it a Layer 2.
Figures are illustrative and chosen to be checkable, not live market data.
The mistake that costs people money
Comparing chains on throughput alone. Decentralisation, validator distribution and the cost of reversing history matter more for anything holding meaningful value, and those are the properties throughput is usually traded against.
Layer 1: common questions
- What is Layer 1?
- The base blockchain layer — the main chain itself (Ethereum, Bitcoin, Solana). Layer 1 handles final settlement and security but often has limited throughput and high transaction costs. All transactions ultimately settle on L1.
- How does Layer 1 work in practice?
- A Layer 1 is a base blockchain that settles its own transactions and provides its own security — Ethereum, Bitcoin, Solana. Everything built on top ultimately inherits whatever guarantees the L1 provides.
- Can you give an example of Layer 1?
- An L1 validates transactions through its own consensus. An L2 posts its data or proofs back to an L1 and relies on that L1 for final settlement, which is precisely what makes it a Layer 2.
- What do people get wrong about Layer 1?
- Comparing chains on throughput alone. Decentralisation, validator distribution and the cost of reversing history matter more for anything holding meaningful value, and those are the properties throughput is usually traded against.