A layer 1 blockchain refers to the base network, which can validate and finalize transactions without the need for another network.
What is Layer 1?
A layer-1 blockchain network is another name for the base network, a network that has the ability to validate and finalize transactions without the need for another network. In comparison, a layer-2 solution is built upon layer-1, relying on the ability of layer-1 to validate and finalize transactions for it to function.
Examples of Layer 1 Blockchains
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance Chain (BNB)
- Solana (SOL)
Importance for Investors
Some of the fastest and greatest growth cryptocurrencies have been layer-1 blockchains. This includes Bitcoin, Ethereum, Binance, and Solana.
One of the reasons layer-1 blockchains have appreciated in value so significantly is that many other projects and applications are built upon them.
Using Ethereum as an example, there are literally thousands of cryptocurrencies built upon Ethereum, helping this cryptocurrency grow in both use, utility and market value.