Layer 1, often referred to as the base layer, is the foundational blockchain protocol on which decentralized applications (dApps), tokens, and other layers are built. These blockchains manage essential operations such as validating transactions, executing smart contracts, and securing the network. L1 blockchains operate independently, typically with their own consensus algorithms, native assets, and governance structures.
Layer 1 blockchains utilize consensus algorithms like Proof of Work (PoW) or Proof of Stake (PoS) to maintain network integrity. These mechanisms determine how participants (miners or validators) agree on the validity of transactions.
Each L1 blockchain often issues a native cryptocurrency. For instance, Bitcoin serves as the currency for the Bitcoin network, while Ether (ETH) is used on Ethereum. These native tokens incentivize participation and secure the network.
Some Layer 1 blockchains, such as Ethereum, offer smart contract functionality, enabling developers to build decentralized applications (dApps) directly on the base layer. Others, like Bitcoin, are more limited in functionality, focusing on secure value transfer.
L1 blockchains must address the “blockchain trilemma,” which refers to the trade-off between scalability, security, and decentralization. Increasing throughput (scalability) often comes at the expense of decentralization or security.
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An overview of the DyDx platform and it’s migration to their own Cosmos chain 🚀
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A PoS tech developed for the AEZ, which allows blockchains to rent/borrow security and blockspace from another, larger chain.
Core Tech Stack
ASIC miners are specialized devices for cryptocurrency mining, known for their high efficiency and performance, pivotal in the competitive mining ecosystem.
Misc.
Double signing, a serious blockchain offense, occurs when a validator signs two different blocks at the same height.
Concepts & TermsValidators are crucial in blockchain networks; verifying transactions and staking cryptocurrency as collateral.
Validators
Peer-to-peer cryptocurrency trading platform operating autonomously via blockchain, eliminating intermediaries.
Concepts & TermsMiddleware bridging blockchains with external data to enable dynamic smart contracts.
Oracles