Layer 1 (L1): Overview
Layer 1 (L1) is the term used to describe the foundational layer of a blockchain network. This layer consists of protocols, consensus models, and other components that are essential for the functioning of a blockchain network. Layer 1 includes both public blockchains such as Bitcoin and Ethereum as well as private or consortium chains like Hyperledger Fabric or Corda.
The primary purpose of Layer 1 is to provide a secure platform on which decentralized applications can be built, allowing users to interact with one another in an immutable fashion without relying on any centralized authority. The various components within Layer 1 form the underlying infrastructure upon which developers can construct smart contracts and other dApps.
In order for transactions to occur on a given network securely, there must be agreement between participants about which data should be recorded onto the blockchain ledger — this requires some kind of consensus mechanism that allows each node operating within the network to come into agreement about what constitutes “truth” at any given point in time. Examples include proof-of-work (POW) consensus algorithms found in networks such as Bitcoin and Ethereum; proof-of-stake (POS) algorithms employed by projects like Tezos; delegated proof-of-stake systems used by EOS; permissioned distributed ledgers supported by Hyperledger Fabric & Corda; etc.. In addition to these mechanisms, most L1s also employ cryptographic hash functions such hashing SHA256 alongside digital signature schemes so that all parties involved have assurance that their interactions will remain secure against malicious actors attempting double spends or other types of manipulation attacks on the system.
Finally it’s important note that while many claims are made with regards to scalability when discussing Layer 2 solutions – often times developers overlook just how much performance can actually be achieved through optimizations done directly at this level before even considering upgrades elsewhere – so if you’re looking for ways maximize throughput for your application then don’t forget about everything available here first!
