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.
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.