Layer 1 (L1)
Layer 1 refers to the base blockchain network like Bitcoin or Ethereum. It's where transactions are initially processed, validated, and recorded on the blockchain itself. This layer handles the fundamental tasks of security, consensus (like Proof-of-Work or Proof-of-Stake), and decentralization. L1 blockchains provide the core infrastructure for all on-chain activities, including smart contracts on platforms like Ethereum. However, they can face scalability issues, leading to the development of Layer 2 (L2) solutions to handle transactions off-chain for better efficiency.
Layer 1 blockchains essentially form the backbone of the crypto ecosystem, offering a platform for security, decentralization, and the initial processing of transactions which can then be scaled or enhanced by subsequent layers or solutions.
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