What is Layer 1 - HashKey Global Blockchain Wiki – HashKey Global

Layer 1 refers to the base layer network in blockchain technology, describing the fundamental protocol that serves as the core of a blockchain system. Layer 1 blockchains provide the essential security, consensus mechanisms, and decentralization features for applications and other layers, such as Layer 2 solutions. Bitcoin and Ethereum are well-known examples of Layer 1 networks, offering foundational transaction verification and consensus frameworks while supporting decentralized applications (dApps), smart contracts, and other blockchain solutions.

Layer 1 blockchains are highly decentralized and secure but face significant scalability challenges. As blockchain applications and transaction demands grow, improving the scalability of Layer 1 networks has become a key challenge for the industry. Layer 1 blockchains often improve performance through consensus mechanisms and protocol upgrades, such as Proof of Work (PoW) or Proof of Stake (PoS) algorithms.

Key Features of Layer 1

Consensus Mechanism Layer 1 blockchains use consensus mechanisms to maintain network security

and decentralization. Common consensus mechanisms include Proof of Work (PoW) and Proof of Stake (PoS),

which ensure that participants agree on the validity of transactions and data on the blockchain, preventing

malicious actions or attacks. For example, Bitcoin uses the PoW mechanism, where miners compete to

solve complex mathematical problems and generate new blocks, while Ethereum is transitioning to a PoS

mechanism, where participants stake Ether (ETH) to achieve decentralized consensus.
Security Layer 1 blockchains provide high levels of security through their consensus mechanisms and

decentralized architecture. Every node verifies and records transactions, preventing tampering and

double-spending attacks. This decentralized design ensures that Layer 1 blockchains operate independently

of centralized control, protecting the network from various threats and attacks.
Decentralization At the core of Layer 1 is decentralization, as it relies on no single entity for control.

With a globally distributed network of nodes, Layer 1 blockchains guarantee transparency and censorship

resistance for transactions and data. Anyone can participate in the network, laying a strong foundation for

decentralized finance (DeFi) and decentralized applications (dApps).
Scalability Challenges While Layer 1 blockchains offer strong security and decentralization, they often face

scalability issues when processing a large number of transactions. Bitcoin and Ethereum, for example, have

relatively slow transaction speeds, limiting their use in high-frequency transaction environments. This challenge

is driving the development of Layer 2 solutions and blockchain upgrades (such as Ethereum 2.0) aimed at

improving transaction speed and throughput through techniques like sharding and off-chain solutions.

Notable Layer 1 Blockchains

Bitcoin (BTC) Bitcoin is the first and most iconic Layer 1 blockchain. Through its Proof of Work (PoW) mechanism

and highly decentralized network, Bitcoin ensures the security and transparency of transactions. As a decentralized

digital currency, Bitcoin offers global value storage and transfer functions, and its network's security and decentralization

have set a benchmark in the blockchain industry. You can participate in Bitcoin trading on the HashKey Global Bitcoin trading page

to explore Bitcoin’s role as a Layer 1 blockchain in the global financial system.
Ethereum (ETH) Ethereum is another leading Layer 1 blockchain, offering not only digital currency transfers but

also supporting smart contracts and decentralized applications (dApps) development and operation. Ethereum’s

network is continuously upgraded (with the transition to Ethereum 2.0) to improve performance, adopting a Proof of Stake (PoS)

mechanism to enhance scalability and security. You can engage in Ethereum trading on the HashKey Global Ethereum trading page

to explore how Ethereum as a Layer 1 blockchain drives the development of decentralized finance (DeFi) and decentralized applications.
Polkadot (DOT) Polkadot is a Layer 1 blockchain focused on cross-chain interoperability. Through its innovative Relay Chain

technology, Polkadot connects multiple blockchains and allows them to share data and assets. Polkadot uses a Proof of Stake (PoS)

consensus mechanism and enhances scalability through parachains, enabling cross-chain communication and collaboration

between different blockchains. Polkadot’s Layer 1 design not only prioritizes its own security and decentralization but also

provides strong interoperability for other blockchains.
Solana (SOL) Solana is a high-performance Layer 1 blockchain designed to provide low latency and high throughput

transaction processing. Solana uses a combination of Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms,

allowing it to process thousands of transactions per second. It is well-suited for the rapid growth of decentralized finance (DeFi)

and decentralized applications (dApps). Solana’s design focuses on solving scalability challenges in Layer 1 blockchains, offering

developers an efficient, low-cost decentralized platform.

Key Impacts of Layer 1

Foundation of the Blockchain Ecosystem Layer 1 blockchains are the foundation of the entire blockchain ecosystem, providing

the security and consensus mechanisms for various decentralized applications and Layer 2 solutions. Whether it’s smart contracts,

dApps, or Layer 2 scalability solutions, Layer 1’s underlying design determines the performance and security of the upper-layer

functionalities.
Balancing Security and Decentralization Layer 1 blockchains ensure data security and censorship resistance through decentralized

networks. Their decentralized architecture makes it costly to attack Layer 1 networks, allowing them to withstand large-scale attacks

and malicious activities, ensuring the stability and long-term security of the network.
Addressing Scalability Challenges While Layer 1 blockchains excel in security and decentralization, they often have limited transaction

processing capacity. To address these challenges, the blockchain community is exploring various scaling solutions, including Layer 2,

off-chain solutions, and sharding technologies, to enhance the performance of Layer 1 and meet global demands.

Why is Layer 1 Crucial to the Blockchain Ecosystem?

Layer 1 blockchains are the core of the entire blockchain ecosystem, providing the foundational support for transaction processing, data

storage, and consensus mechanisms. Through the decentralized design of Layer 1 blockchains, global users can securely and transparently

transact and exchange information without relying on intermediaries. Whether for Bitcoin’s digital currency functions or Ethereum’s smart

contract platform, Layer 1 plays a crucial role in driving blockchain technology’s application and development. By continually innovating

and upgrading protocols, Layer 1 blockchains push the scalability, security, and decentralization of blockchain networks forward, laying

the groundwork for future decentralized applications.

Conclusion

Layer 1 is the foundational layer of blockchain networks, providing critical support for security, decentralization, and consensus mechanisms.

Through Layer 1 blockchains, projects like Bitcoin and Ethereum offer global digital currency, smart contract, and decentralized application

services. While Layer 1 faces scalability challenges, continuous technological innovation is driving transformative changes across global

finance and technology. HashKey Global offers a leading cryptocurrency trading platform, supporting a variety of Layer 1 blockchain projects,

helping users participate securely and conveniently in the blockchain ecosystem.

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