Layer-1 Ecosystems

Definition ∞ Layer-1 ecosystems refer to the foundational blockchain networks that process and finalize transactions directly on their own chain. Examples include Bitcoin and Ethereum, which provide the base security and decentralization for their respective networks. These systems establish the core rules and consensus mechanisms for all operations. They are the primary settlement layers for digital assets.
Context ∞ Competition among Layer-1 ecosystems is intense, with projects continually striving for improved scalability, security, and decentralization. Debates often concern the “blockchain trilemma,” where optimizing one aspect may compromise another. The development of Layer-2 solutions aims to alleviate congestion and high fees on these base layers. Interoperability between different Layer-1 networks is a key area of future advancement.