The foundational layer, often called Layer 1, refers to the underlying blockchain protocol that establishes the core security, consensus, and transaction settlement mechanisms for a digital asset system. This layer provides the basic infrastructure upon which other layers and applications are built. It determines fundamental properties such as decentralization, security, and transaction throughput. Examples include Bitcoin and Ethereum.
Context
The performance and security of the foundational layer are constant subjects of discussion in cryptocurrency news, particularly concerning scalability upgrades and consensus mechanism changes. Debates frequently involve the trade-offs between decentralization, security, and speed at this base level. Future developments will continue to focus on improving the efficiency and capacity of foundational layers, with innovations like sharding and alternative consensus models aiming to support wider adoption of decentralized applications.
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