Compared to other technical interventions, the exponential growth of the blockchain ecosystem is without precedent. Each day, innovative blockchain-based solutions, apps, and ideas are introduced to the market. Compared to the dozen or so cryptocurrencies that existed just a decade ago, the number of cryptocurrencies and blockchain networks available now is staggering.
Growing adoption and usage of blockchain networks, however, hinges heavily on their ability to scale. In this scenario, layer 1 blockchain solutions would be required. Then, what exactly are the solutions of blockchain layer 1? How do these solutions compare to the blockchain in general? In this post, we’ll look closely at layer 1 of the blockchain and see what it’s all about.
What’s the Deal with Layer 1 Blockchain Technology?
Finding the history of layer 1 solutions is an essential first step in getting to the bottom of “What is a layer 1 blockchain?” Decentralization, scalability, and security are perhaps the first things that come to mind when you think of blockchain technology. With blockchain technology, you can rest easy knowing that all transactions are recorded and cannot be altered once made.
Is there a problem with scaling? Vitalik Buterin, the creator of Ethereum, has stated that there are just two benefits that blockchain technology may provide. It may be necessary to sacrifice scalability to achieve decentralization and security. Bitcoin is a prime illustration of this. No amount of optimization of Bitcoin’s blockchain security or decentralization will allow it to provide the requisite level of scalability.
Do Blockchain Networks Need to be Scalable?
Is there any way that blockchain technology could never be scalable? Given the exponential growth of blockchain-based apps and services, the ability to scale is crucial. The scalability of blockchain technology could aid in the expansion of a network’s capacity to meet emerging needs in terms of processing speeds and power.
When the number of users and the number of applications running on a blockchain both rise, scalability becomes crucial. If blockchain networks are going to be competitive with centralized networks in terms of transaction volumes, user experience, and application development, they need to be able to scale. Simplified technically, a layer 1 blockchain protocol for scalability guarantees a higher throughput rate or the number of transactions processed per second.
Layer 1 Blockchain: A Working Definitive Definition
Blockchain solutions at the first or layer, of the protocol stack, are those that aim to enhance the underlying protocols themselves. Layer 1 solutions improve the system’s scalability by making minor adjustments to the underlying protocol. Scalability problems have plagued several well-known blockchain networks.
Developers in the blockchain space have been putting time and energy into finding scalability solutions without giving much thought to the alternatives. Some of the most well-known implementations of blockchain at the layer 1 level illustrate the variety of scaling strategies that can be attained by using layer 1 options. Layer 1 solutions, for instance, can make larger blocks possible than the underlying protocol would allow. This allowed for more transactions to be processed in a single block by the blockchain network.
Sharding and adjusting consensus algorithms are two other mainstays for introducing solutions into a layer 1 blockchain. Coins like Bitcoin, Binance Smart Chain, Ethereum, Avalanche, and Litecoin all belong to the first layer of the blockchain network. These networks are good examples of why layer 1 solutions are essential.