What is a Layer 1 Blockchain?
Layer 1 blockchains (L1) are the base protocols where transactions are recorded, consensus is achieved, and core network rules are enforced. They provide the infrastructure for cryptocurrencies, dApps, and smart contracts.
Table of contents
Key Features of Layer 1 Blockchains
- Decentralization: Operate without central authority using distributed nodes.
- Consensus Mechanisms: PoW, PoS, DPoS and others secure the network.
- Native Cryptocurrency: Each L1 has its own coin used for fees and transfers.
- Smart Contracts: Many L1s support programmable contracts for DeFi and NFTs.
- Security & Transparency: Transactions are public and secured by consensus.
- Scalability (varies): Throughput differs per chain; some prioritize speed, others decentralization.
Top Layer 1 Blockchain Examples (2025)
| Blockchain | Consensus | Main Use Cases | TPS* |
|---|---|---|---|
| Bitcoin | Proof of Work | Digital currency, store of value | ~7 |
| Ethereum | Proof of Stake | Smart contracts, DeFi, NFTs | ~30-100 |
| Solana | Proof of History + PoS | dApps, DeFi, NFTs | ~2,000+ |
| BNB Chain | Delegated PoS | DeFi, dApps, exchanges | ~300 |
| Cardano | Proof of Stake | Smart contracts, DeFi | ~250 |
| Avalanche | Proof of Stake | dApps, DeFi, enterprise | ~4,500 |
| Polkadot | Nominated PoS | Interoperability, parachains | ~1,000 |
| Tezos | Liquid PoS | Smart contracts, NFTs | ~40 |
| Algorand | Pure PoS | Payments, DeFi | ~1,000 |
| NEAR Protocol | Nightshade PoS | dApps, scalability | ~100,000 |
*TPS: Transactions per second (approximate, varies by network conditions)
Layer 1 vs. Layer 2: What’s the Difference?
| Feature | Layer 1 | Layer 2 |
|---|---|---|
| Purpose | Base protocol, security, decentralization | Scalability, faster/cheaper transactions |
| Consensus | Native (PoW, PoS, etc.) | Inherits from L1, adds own mechanisms |
| Transaction Fees | Higher | Lower |
| Upgrades | Hard/soft forks | Protocol updates, less disruptive |
| Examples | Bitcoin, Ethereum, Solana | Lightning Network, Arbitrum, Polygon |
Use Cases of Layer 1 Blockchains
- Cryptocurrencies: Native coins for payments and value transfer.
- DeFi: Decentralized finance protocols and lending platforms.
- NFTs: Creation and trading of non-fungible tokens.
- Enterprise: Supply chain, healthcare, identity management.
- Global Financial Inclusion: Access to financial services worldwide.
- Interoperability: Connecting different blockchains (e.g., Polkadot, Cosmos).
Security and Scalability in Layer 1
- Security: Achieved through consensus, cryptography, and decentralization.
- Scalability: Some L1s are limited in TPS, leading to Layer 2 solutions for scaling.
- Upgrades: Hard forks and protocol changes are needed for major improvements.
Emerging Trends in Layer 1 Blockchains (2025)
- Interoperability between blockchains (cross-chain bridges, parachains).
- Integration with traditional finance and real-world assets.
- Enhanced scalability and energy efficiency.
- Decentralized identity and privacy solutions.
- On-chain governance and community-driven upgrades.
FAQ: Layer 1 Blockchains
What makes a blockchain a Layer 1 blockchain?
A Layer 1 blockchain is the base protocol where transactions are directly recorded and consensus is achieved. It defines the core rules and security of the network.
Can Layer 1 blockchains be used beyond cryptocurrencies?
Yes, Layer 1 blockchains power DeFi, NFTs, supply chain, healthcare, and more, offering a wide range of applications.
What are the top Layer 1 blockchains in 2025?
Bitcoin, Ethereum, Solana, BNB Chain, Cardano, Avalanche, Polkadot, Tezos, Algorand, and NEAR Protocol are among the leading Layer 1 blockchains.
How do Layer 1 and Layer 2 blockchains differ?
Layer 1 is the foundational protocol, while Layer 2 solutions are built on top to improve scalability and reduce fees.
Further Reading & Internal Links
Layer 1 blockchains are the backbone of the decentralized world, powering cryptocurrencies, DeFi, NFTs, and much more. Understanding their features, strengths, and limitations is key to navigating the future of blockchain technology.