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Glossar

What is Layer 1? Intermediate

A layer 1 is a base blockchain, such as Bitcoin or Ethereum, that settles its own transactions and supplies the security everything built on top depends on.

In crypto architecture, the foundational network is called layer 1. It is the base that records transactions, runs consensus and secures the whole system, and Bitcoin, Ethereum and Solana are all examples. Because everything ultimately settles here, a layer 1's security and decentralisation form the bedrock that other projects, tokens and applications quietly rely on, whether their users realise it or not.

The catch is that base layers wrestle with a stubborn trade-off, often called the blockchain trilemma: it is very hard to maximise security, decentralisation and speed all at the same time. A network tuned for strong decentralisation and security, like Bitcoin, tends to process transactions relatively slowly and can grow expensive when demand is high. That very limitation is what motivated layer 2 solutions, which handle bulk activity off the base layer and then settle back down to it for finality.

When you compare blockchains as platforms or investments, you are usually comparing layer 1s and the particular balance each has struck between those three goals. Grasping that a layer 1 is the settlement foundation, and that layer 2s extend rather than replace it, is the key to seeing how the whole ecosystem fits together instead of treating every network as interchangeable.

Key takeaways

  • A layer 1 is a base blockchain that settles its own transactions and provides the network's core security.
  • Bitcoin, Ethereum and Solana are examples; everything built on top ultimately relies on the layer 1's guarantees.
  • Base layers face a trade-off between security, decentralisation and speed, which is why layer 2s exist.

Layer 1 — häufig gestellte Fragen

What makes a blockchain a layer 1?

It settles transactions on its own and provides its own security through its consensus mechanism, rather than leaning on another chain. Bitcoin and Ethereum are classic layer 1s because everything on them ultimately settles on that base network.

Why can't a layer 1 be fast, cheap and secure all at once?

This is the blockchain trilemma. Pushing hard on speed and low cost usually means compromising on decentralisation or security. Different layer 1s choose different balances, and that choice is much of what distinguishes one base chain from another.

This definition is educational and not financial advice. Crypto is volatile and high-risk — always do your own research.
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