Layer 1 Chain Overview
A layer 1 chain is an immutable public ledger that stores the history of all transactions on a decentralized network. A blockchain, which is the underlying technology for many cryptocurrencies, can be referred to as a layer 1 chain. This distributed ledger stores data in blocks that are connected together and secured using cryptography. Every time someone sends or receives funds, this transaction is recorded on the blockchain and its details are made available to anyone with access to it.
The main purpose of a layer 1 chain is to provide secure and reliable ways of managing digital assets without having to rely on third-party services such as banks or other financial institutions. The security of these networks comes from their distributed nature; instead of relying on one server or computer, they use several nodes around the world that act as validators ensuring accuracy and integrity when verifying transactions before adding them onto the blockchain. As each node must agree with one another before any changes can be made, malicious actors attempting to manipulate data would need control over at least 51% of all participating computers in order for their attack to succeed.
Benefits Of Layer 1 Chains
Security – The cryptographic algorithms used by blockchains make them highly resistant against tampering attempts due to its distributed nature; if someone wanted to modify data stored within a single block then they’d have gain control over more than half of all computers storing copies making it nearly impossible for attackers do so successfully .
Transparency – All transactions included within a given block will be visible by everyone accessing the network allowing users verify whether or not payments have gone through correctly without needing much effort .
Efficiency & Cost Reduction – Due its decentralization model ,layer1 chains do not require middle man fees associated with traditional payment methods like credit cards nor delays caused by intermediaries when processing transfers ,allowing users save money while completing faster transactions compared standard banking systems .
