Definition ∞ The Base Layer is the foundational blockchain network upon which other layers and applications are constructed. It handles core functions such as transaction validation, security, and consensus mechanisms. The base layer establishes the fundamental rules and infrastructure for an entire digital asset ecosystem. Its design choices directly influence the network’s decentralization, security, and scalability.
Context ∞ News often reports on base layer upgrades and their impact on network capacity and transaction costs. Debates frequently center on the “scalability trilemma,” balancing decentralization, security, and transaction throughput. Future developments include advancements in consensus algorithms and sharding solutions aimed at improving base layer performance without compromising its core properties. The health of a base layer is a primary indicator of an ecosystem’s long-term viability.
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