Layer 1 (L1) refers to the foundational blockchain — the base settlement layer where transactions ultimately finalize. Major L1s: Bitcoin (oldest, most secure), Ethereum (most programmable, largest dev ecosystem), Solana (high throughput), Cardano, Avalanche, Cosmos. L1s handle consensus (proof-of-work or proof-of-stake) and security. Trade-offs (the 'blockchain trilemma'): decentralization, security, and scalability — can't optimize all three. Bitcoin prioritizes security; Solana prioritizes scalability; Ethereum balances all three. Layer 2 solutions (Arbitrum, Optimism) build on top of L1s to provide scalability while inheriting L1 security. L1 token (ETH, SOL, etc.) typically secures the network through staking.
Article
Airdrop
An airdrop is a distribution of free cryptocurrency tokens to users meeting specific criteria — often early protocol…
Bitcoin
Bitcoin (BTC) is the first and largest cryptocurrency, created by pseudonymous Satoshi Nakamoto in 2009 as peer-to-peer electronic…
Bitcoin Halving
Bitcoin halving is the programmed event occurring roughly every 4 years (every 210,000 blocks) that cuts the block…
Blockchain
Blockchain is a distributed digital ledger that records transactions across a network of computers in a way that's…
Cold Storage
Cold storage refers to keeping cryptocurrency private keys completely offline, eliminating online attack vectors. Methods: hardware wallets (most…
Cryptocurrency
Cryptocurrency is digital money secured by cryptography and recorded on a blockchain. Categories: payment cryptos (Bitcoin, Litecoin), platform…
Layer 1
August 22, 2026 · Aditya Gupta
Investing
Related terms
Airdrop
An airdrop is a distribution of free cryptocurrency tokens to users meeting specific criteria — often early protocol…
Bitcoin
Bitcoin (BTC) is the first and largest cryptocurrency, created by pseudonymous Satoshi Nakamoto in 2009 as peer-to-peer electronic…
Bitcoin Halving
Bitcoin halving is the programmed event occurring roughly every 4 years (every 210,000 blocks) that cuts the block…
Blockchain
Blockchain is a distributed digital ledger that records transactions across a network of computers in a way that's…
Cold Storage
Cold storage refers to keeping cryptocurrency private keys completely offline, eliminating online attack vectors. Methods: hardware wallets (most…
Cryptocurrency
Cryptocurrency is digital money secured by cryptography and recorded on a blockchain. Categories: payment cryptos (Bitcoin, Litecoin), platform…
