Layer 1

Definition ∞ Layer 1 refers to the foundational blockchain network itself, such as Bitcoin or Ethereum, which provides the core infrastructure for decentralized applications and transactions. These networks establish the fundamental rules for consensus, security, and transaction finality. Their design dictates the overall capabilities and scalability of the entire digital asset ecosystem built upon them.
Context ∞ Layer 1 blockchains are currently undergoing significant development to address scalability limitations and enhance transaction throughput. Discussions frequently revolve around protocol upgrades, such as Ethereum’s transition to proof-of-stake, and the exploration of new consensus mechanisms. Future developments to watch include the continued evolution of Layer 1 scalability solutions and their interoperability with other blockchain networks.