Ethereum Layer One

Definition ∞ Ethereum Layer One refers to the foundational blockchain of the Ethereum network, where all transactions are ultimately processed and secured. This base layer establishes the core security, decentralization, and data availability for the entire ecosystem. It serves as the primary settlement layer for smart contracts and decentralized applications. The integrity of this layer is paramount.
Context ∞ Ethereum Layer One is consistently a central theme in crypto news, particularly concerning its ongoing development and scalability solutions. The current situation involves efforts to enhance its transaction capacity and efficiency through upgrades like sharding. A key debate revolves around the balance between maintaining decentralization and achieving higher throughput. Critical future developments include the successful implementation of these scaling solutions and their impact on network performance.