What is Layer 1？

Layer 1 in blockchain technology refers to the foundational network layer of a blockchain, such as Bitcoin, Ethereum, or BNB Chain. It encompasses the core infrastructure that supports the creation, validation, and finalization of transactions directly on the blockchain without the need for another network. This base layer is crucial because it determines the overall functionality, security, scalability, and decentralization of the blockchain.

Why is Layer 1 important？

Layer 1 is important for several reasons:

• Decentralization and Security: It ensures the blockchain operates in a decentralized manner, where no single entity has control over the entire network, thereby enhancing security.

• Scalability Solutions: Through innovations such as sharding or consensus mechanism adjustments (like Proof of Stake or Proof of Work), Layer 1 solutions aim to tackle the blockchain scalability trilemma, which balances scalability with security and decentralization.

• Foundation for Further Development: It provides the foundational platform upon which Layer 2 solutions (off-chain scalability solutions) and applications can be built, extending the blockchain's functionality and efficiency.

What are the currently well-known head layer 1 projects?

• Bitcoin (BTC): The first and most well-known cryptocurrency, Bitcoin focuses on being a decentralized digital currency. While not known for its smart contract capabilities, it's highly regarded for its security and the pioneering role it has played in the cryptocurrency space.

• Ethereum (ETH): Known for its smart contract functionality and extensive decentralized application (dApp) ecosystem.

• BNB Chain (BNB): Formerly Binance Chain and Binance Smart Chain, known for its founder Binance, which is the biggest CEX in the world.

• Solana (SOL): Touted for its high throughput and fast transaction speeds, thanks to its unique Proof of History consensus.

• Cardano (ADA): Focuses on a research-driven approach to design and development, aiming for high scalability and sustainability.

• Avalanche (AVAX): Known for its rapid transaction finality and scalable dApps platform.

What are the important indicators for evaluating Layer 1?

When assessing Layer 1 blockchains, important indicators include:

• Transaction Throughput: Measured in transactions per second (TPS), indicating the network's capacity to process transactions.

• Decentralization Level: The degree to which control and decision-making are spread across the network, impacting security and resistance to censorship.

• Consensus Mechanism: The method by which transactions are validated and agreed upon by the network, affecting security, scalability, and energy efficiency.

• Developer Activity: Indicates the vibrancy of the ecosystem, as higher activity suggests a more robust and evolving platform.

• Adoption and Network Effect: Measured by the number of active users, dApps, and overall transaction volume, indicating blockchain's utility and value to its users.