rewrite this title What is a Layer-1 (L1) Blockchain? L1 Problems & Future

Layer-1 blockchains are the foundation of the crypto world. These networks handle everything on their own: transaction validation, consensus, and record-keeping. Bitcoin and Ethereum are two famous examples. They don’t rely on any other blockchains to function. In this guide, you’ll learn what Layer-1 means, how it works, and why it matters.

What Is a Layer-1 Blockchain?

A Layer-1 blockchain is a self-sufficient distributed ledger. It handles everything on its own chain. Transactions, consensus, and security all happen at this level. You don’t need any other system to make it work.

Bitcoin and Ethereum are the most well-known examples. These networks process transactions directly and keep their own records. Each has its own coin and blockchain protocol. You can build decentralized applications on them, but the base layer stays in control.

Why Are They Called “Layer-1”?

Think of blockchains like a stack of building blocks. The bottom block is the foundation. That’s Layer-1.

It’s called “Layer-1” because it’s the first layer of the network. It holds all the core functions: confirming transactions, updating balances, and keeping the system safe. Everything else, like apps or faster tools, builds on top of it.

We use layers because it’s hard to change the base once it’s built. Instead, developers add layers to upgrade performance without breaking the core. Layer-2 networks are a good example of that. They work with Layer-1 but don’t replace it.

Why Do We Need More Than One Layer?

Because Layer-1 can’t do everything at once. It’s secure and decentralized, but not very fast. And when too many users flood the network, things slow down even more.

Bitcoin, for example, handles only about 7 transactions per second. That’s far from enough to meet global demand. Visa, in comparison, processes thousands of transactions per second.

To fix this, developers introduced other blockchain layers. These layers, like Layer-2 scalability solutions, run on top of the base chain. They enhance scalability by processing more transactions off-chain and then sending the results back to Layer-1.

This setup keeps the system secure and boosts performance. It also unlocks new features. Fast-paced apps like games, micropayments, and trading platforms all need speed. These use cases don’t run well on slow, foundational layers. That’s why Layer-2 exists—to extend the power of Layer-1 without changing its core.

Read also: What Are Layer-0 Blockchains?

How Does a Layer-1 Blockchain Actually Work?

A Layer-1 blockchain processes every transaction from start to finish. Here’s what happens:

Step 1: Sending a transaction

When you send crypto, your wallet creates a digital message. This message is signed using your private key. That’s part of what’s called an asymmetric key pair—two linked keys: one private, one public.

Your private key proves you’re the owner. Your public key lets the network verify your signature without revealing your private info. It’s how the blockchain stays both secure and open.

Your signed transaction is then broadcast to the network. It enters a waiting area called the mempool (memory pool), where it stays until validators pick it up.

Step 2: Validating the transaction

Validators check that your transaction follows the rules. They confirm your signature is valid. They make sure you have enough funds and that you’re not spending the same crypto twice.

Different blockchains use different methods to validate transactions. Bitcoin uses Proof of Work, and Ethereum now uses Proof of Stake. But in all cases, the network checks each transaction before it moves forward.

Block producers often handle multiple transactions at once, bundling them into a block. If your transaction is valid, it’s ready to be added.

Step 3: Adding the transaction to the blockchain

Once a block is full of valid transactions, it’s proposed to the network. The block goes through one final check. Then, the network adds it to the chain.

Each new block links to the last one. That’s what forms the “chain” in blockchain. The whole process is secure and permanent.

On Bitcoin, this happens every 10 minutes. On Ethereum, it takes about 12 seconds. Once your transaction is in a confirmed block, it’s final. No one can change it.

Key Features of Layer-1 Blockchains

Decentralization

Because the blockchain is a distributed ledger, no single server or authority holds all the power. Instead, thousands of computers around the world keep the network running.

These computers are called nodes. Each one stores a full copy of the blockchain. Together, they make sure everyone sees the same version of the ledger.

Decentralization means no one can shut the network down. It also means you don’t have to trust a middleman. The rules are built into the code, and every user plays a part in keeping things fair.

Security

Security is one of Layer-1’s biggest strengths. Once a transaction is confirmed, it’s nearly impossible to reverse. That’s because the whole network agrees on the data.

Each block is linked with a cryptographic code called a hash. If someone tries to change a past transaction, it breaks the link. Other nodes spot the change and reject it.

Proof of Work and Proof of Stake both add more protection. In Bitcoin, changing history would cost millions of dollars in electricity. In Ethereum, an attacker would need to control most of the staked coins. In both cases, it’s just not worth the effort.

Scalability (and the Scalability Trilemma)

Scalability means handling more transactions, faster. And it’s where many Layer-1s struggle.

Bitcoin handles about 7 transactions per second. Ethereum manages 15 to 30. That’s not enough when millions of users join in.

Some networks like Solana aim much higher. Under ideal conditions, Solana can process 50,000 to 65,000 transactions per second. But high speed comes with trade-offs.

This is known as the blockchain trilemma: you can’t maximize speed, security, and decentralization all at once. Improve one, and you often weaken the others.

That’s why many Layer-1s stick to being secure and decentralized. They leave the speed upgrades to Layer-2 scaling solutions.

Popular Examples of Layer-1 Blockchains

Not all Layer-1s are the same. Some are slow and super secure. Others are fast and built for speed-hungry apps. Let’s walk through five well-known Layer-1 blockchains and what makes each one stand out.

Bitcoin (BTC)

Bitcoin was the first successful use of blockchain technology. It launched in 2009 and kicked off the entire crypto movement. People mainly use it to store value and make peer-to-peer payments.

It runs on Proof of Work, where miners compete to secure the Bitcoin network. That makes Bitcoin highly secure, but also fairly slow—it handles about 7 transactions per second, and each block takes around 10 minutes.

Bitcoin operates as its only layer, without relying on other networks for security or validation. That’s why it’s often called “digital gold”—great for holding, not for daily purchases. Still, it remains the most trusted name in crypto.

Ethereum (ETH)

Ethereum came out in 2015 and introduced something new—smart contracts. These let people build decentralized apps (dApps) directly on the blockchain.

It started with Proof of Work but switched to Proof of Stake in 2022. That one change cut Ethereum’s energy use by over 99%.

Read also: What Is The Merge? 

Ethereum processes about 15–30 transactions per second. It’s not the fastest, and it can get pricey during busy times. But it powers most of the crypto apps you’ve heard of—DeFi platforms, NFT marketplaces, and more. If Bitcoin is digital gold, Ethereum is the entire app store.

Solana (SOL)

Solana is built for speed. It launched in 2020 and uses a unique combo of Proof of Stake and Proof of History consensus mechanisms. That helps it hit up to 65,000 transactions per second in the best-case scenario.

Transactions are fast and cheap—we’re talking fractions of a cent and block times under a second. That’s why you see so many games and NFT projects popping up on Solana.

However, Solana had a few outages, and running a validator node takes serious hardware. But if you want a high-speed blockchain, Solana is a strong contender.

Cardano (ADA)

Cardano takes a more careful approach. It launched in 2017 and was built from the ground up using academic research and peer-reviewed code.

It runs on Ouroboros, a type of Proof of Stake that’s energy-efficient and secure. Cardano supports smart contracts and keeps getting upgrades through a phased rollout.

It handles dozens of transactions per second right now, but future upgrades like Hydra aim to scale that up. People often choose Cardano for socially impactful projects—like digital IDs and education tools in developing regions.

Avalanche (AVAX)

Avalanche is a flexible blockchain platform built for speed. It went live in 2020 and uses a special type of Proof of Stake that lets it execute transactions in about one second.

Instead of one big chain, Avalanche has three: one for assets, one for smart contracts, and one for coordination. That helps it handle thousands of transactions per second without getting bogged down.

You can even create your own subnet—basically a mini-blockchain with its own rules. That’s why Avalanche is popular with developers building games, financial tools, and enterprise apps.

Layer-1 vs. Layer-2: What’s the Difference?

Layer-1 and Layer-2 blockchains work together. But they solve different problems. Layer-1 is the base. Layer-2 builds on top of it to improve speed, fees, and user experience.

Let’s break down the difference across five key features.

Read also: What Is Layer 2 in Blockchain?

Speed

Layer-1 networks can be slow. Bitcoin takes about 10 minutes to confirm a block. Ethereum does it faster—around 12 seconds—but it still gets congested.

To improve transaction speeds, developers use blockchain scaling solutions like Layer-2 networks. These solutions process transactions off the main chain and only settle the final result on Layer-1. That means near-instant payments in most cases.

Fees

Layer-1 can get expensive. When the network is busy, users pay more to get their transaction through. On Ethereum, fees can shoot up to $20, $50, or even more during peak demand.

Layer-2 helps with that. It bundles many transactions into one and settles them on the main chain. That keeps fees low—often just a few cents.

Decentralisation

Layer-1 is usually more decentralized. Thousands of independent nodes keep the network running. That makes it hard to censor or shut down.

Layer-2 may use fewer nodes or special operators to boost performance. That can mean slightly less decentralization—but the core security still comes from the Layer-1 underneath.

Security

Layer-1 handles its own security. It relies on cryptographic rules and a consensus algorithm like Proof of Work or Proof of Stake. Once a transaction is confirmed, it’s locked in.

Layer-2 borrows its security from Layer-1. It sends proof back to the main chain, which keeps everyone honest. But if there’s a bug in the bridge or contract, users might face some risk.

Use Cases

Layer-1 is your base layer. You use it for big transactions, long-term holdings, or anything that needs strong security.

Layer-2 is better for day-to-day stuff. Think fast trades, games, or sending tiny payments. It’s built to make crypto smoother and cheaper without messing with the foundation.

Problems of Layer-1 Blockchains

Layer-1 networks are powerful, but they’re not perfect. As more people use them, three big issues keep showing up: slowdowns, high fees, and energy use.

Network Congestion

Layer-1 blockchains can only handle so much at once. The Bitcoin blockchain processes around 7 transactions per second. Ethereum manages between 15 and 30. That’s fine when things are quiet. But when the network gets busy, everything slows down.

Transactions pile up in the mempool, waiting to be included in the next block. That can mean long delays. In some cases, a simple transfer might take minutes or even hours.

This gets worse during market surges, NFT drops, or big DeFi events. The network can’t scale fast enough to keep up. That’s why developers started building Layer-2 solutions—to handle any overflow.

High Transaction Fees

When more people want to use the network, fees go up. It’s a bidding war. The highest bidder gets their transaction processed first.

On Ethereum, fees can spike to $50 or more during busy periods. Even simple tasks like sending tokens or minting NFTs can become too expensive for regular users.

Bitcoin has seen this too. In late 2017, during a bull run, average transaction fees jumped above $30. It priced out small users and pushed them to wait—or use another network.

Energy Consumption

Some Layer-1s use a lot of energy. Bitcoin is the biggest example. Its Proof of Work system relies on thousands of miners solving puzzles. That uses more electricity than many countries.

This setup makes Bitcoin very secure. But it also raises environmental concerns. Critics argue that it’s not sustainable long term.

That’s why many newer blockchains now use Proof of Stake. Ethereum made the switch in 2022 and cut its energy use by more than 99%. Other chains like Solana and Cardano were built to be energy-efficient from day one.

The Future of Layer-1 Blockchains

Layer-1 blockchains are getting upgrades. Fast.

Ethereum plans to add sharding. This will split the network into smaller parts to handle more transactions at once. It’s one way to scale without losing security.

Other projects are exploring modular designs. That means letting different layers handle different jobs—like one for data, one for execution, and one for security.

We’re also starting to see more chains focused on energy efficiency. Proof of Stake is becoming the new standard since it cuts power use without weakening trust.

Layer-1 won’t disappear – it will just keep evolving to support bigger, faster, and more flexible networks. As Layer-1s continue to evolve, we’ll see more connected blockchain ecosystems—where multiple networks work together, share data, and grow side by side.

FAQ

Is Bitcoin a layer-1 blockchain?

Yes. Bitcoin is the original Layer-1 blockchain. It runs on its own network, uses its own rules, and doesn’t rely on any other blockchain to function. All transactions happen directly on the Bitcoin ledger. It’s a base layer—simple, secure, and decentralized. While other tools like the Lightning Network build on top of it, Bitcoin itself stays at the core as the foundation.

How many Layer 1 blockchains are there?

There’s no exact number. New Layer-1s launch all the time.

Why do some Layer-1 blockchains have high transaction fees?

Fees rise when demand is high. On Layer-1, users compete to get their transactions included in the next block. That creates a fee auction—whoever pays more, gets in first. That’s why when the network is congested, gas fees spike. Ethereum and Bitcoin both experience this often, and limited throughput and high traffic are the main causes. Newer Layer-1s try to keep fees low with better scalability.

How do I know if a crypto project is Layer-1?

Check if it has its own blockchain. A Layer-1 project runs its own network, with independent nodes, a native token, and a full transaction history. It doesn’t rely on another chain for consensus or security.

For example, Bitcoin and Ethereum are Layer-1s. Meanwhile, a token built on Ethereum (like USDC or Uniswap) is not. It lives on Ethereum’s Layer-1 but doesn’t run on its own.

Can one blockchain be both Layer-1 and Layer-2?

Not exactly, but it depends on how it’s used. A blockchain can act as Layer-1 for its own network while working like a Layer-2 for another.

For example, Polygon has its own chain (Layer-1), but people call it Layer-2 because it helps scale Ethereum. Some Polkadot parachains are similar—independent, but connected to a larger system. It’s all about context.

What happens if a Layer-1 blockchain stops working?

If that happens, the entire blockchain network freezes. No new transactions can be processed. Your funds are still there, but you can’t send or receive anything until the chain comes back online.

Solana has had a few outages like this—and yes, plenty of memes were made because of it. But as of 2025, the network seems much more stable. Most outages get fixed with a patch and a coordinated restart. A complete failure, though, would leave assets and apps stuck—possibly forever.

Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.