L1 Transactions

Definition ∞ L1 transactions are operations processed and settled directly on the main, foundational blockchain layer, also known as Layer 1. These typically involve direct transfers of native cryptocurrency, smart contract executions, or state changes recorded on the base ledger. L1 transactions are secured by the network’s core consensus mechanism and offer the highest degree of finality.
Context ∞ L1 transactions form the bedrock of blockchain security and decentralization, but they often face scalability limitations, leading to higher fees and slower processing times during periods of network congestion. The ongoing challenge of improving L1 transaction throughput without compromising security or decentralization is a central theme in blockchain development. News frequently discusses L1 network upgrades and their impact on transaction costs, speeds, and overall user experience.