L1 Infrastructure

Definition ∞ L1 infrastructure refers to the foundational blockchain network itself, providing the core security and settlement layer for all transactions. This includes the main chain’s consensus mechanism, block production, and fundamental smart contract capabilities. It serves as the base layer upon which all other decentralized applications and Layer 2 solutions are built. The performance, scalability, and security of the L1 infrastructure are critical determinants of an entire ecosystem’s capabilities.
Context ∞ L1 infrastructure development is a continuous race for scalability and efficiency, with ongoing discussions about different consensus mechanisms and sharding solutions to handle increasing transaction volumes. The key challenge involves improving throughput without compromising decentralization or security. Future developments will likely involve significant upgrades to existing L1s and the emergence of new base layers optimized for specific use cases.