Layer 1 (L1)
Also called: L1 · base layer · layer one
Definition
A layer 1 (L1) is a base blockchain that processes and finalises transactions on its own network with its own consensus and native coin, such as Bitcoin, Ethereum or Solana.
This entry is shown in English.
How Layer 1 works
An L1 is responsible for everything: ordering transactions, reaching consensus, storing data and securing the chain. It has its own native coin used for fees and, on proof-of-stake chains, for staking. Bitcoin, Ethereum, Solana, BNB Chain, Avalanche and Tron are all layer 1 networks.
L1 designs trade off three goals: security, decentralization and scalability. Ethereum keeps its base layer conservative and pushes most activity to layer 2 networks. Solana aims for high throughput on the L1 itself, with more demanding hardware for validators. Neither choice is free; each shapes fees, speed and how many people can run a node.
For you, the L1 decides which wallet format you use, which coin pays gas and how long withdrawals take. When an exchange lists withdrawal networks for a token, many of those options are different L1s, each with its own fee and confirmation time.
Example
Suppose you want to send 100 USDT to a friend. On an exchange you might see options such as Ethereum, Tron and Solana, all of which are layer 1 networks. The exchange might charge a few USDT for the Ethereum route because base-layer gas is expensive, and well under 1 USDT for Solana. If your friend's wallet only supports Tron, you must pick Tron, even if another network is cheaper, or the funds may not arrive.
Common mistakes
- Assuming the same address works on every L1; formats and supported tokens differ.
- Choosing the cheapest withdrawal network without checking that the receiver supports it.
- Judging an L1 only by transaction speed while ignoring decentralization and security.
Learn and practise
FAQ
What is the difference between layer 1 and layer 2?
A layer 1 settles transactions on its own chain. A layer 2 processes transactions separately and posts proofs or data back to a layer 1, inheriting much of its security.
Is Bitcoin a layer 1?
Yes. Bitcoin is the original layer 1. Systems such as the Lightning Network are built on top of it.
Why are there so many layer 1 blockchains?
Teams make different design choices for speed, cost, programming languages and decentralization, and each L1 competes for users and developers.