Blockchain Layer 1 refers to the underlying protocol or network layer of a blockchain system. This layer is responsible for managing the consensus mechanism that validates transactions and maintains the integrity of the blockchain.
Layer 1 protocols provide the foundation for blockchain systems, and they typically include features such as:
Consensus mechanism: This is the algorithm that enables nodes in the network to agree on the validity of transactions and to add them to the blockchain.
Cryptography: This includes cryptographic algorithms such as hashing and digital signatures that provide security and privacy to the network.
Block structure: The structure of blocks in the blockchain, including the size and the number of transactions that can be included in each block.
Network protocol: The protocol used to communicate between nodes in the network and to propagate transactions and blocks.
Examples of Layer 1 blockchain protocols include Bitcoin, Ethereum, and Cardano. These protocols are designed to be decentralized, meaning that there is no central authority controlling the network. Instead, transactions are validated and added to the blockchain by a distributed network of nodes, each of which has a copy of the blockchain.