Layer 1 Performance

Definition ∞ Layer 1 performance refers to the efficiency and capacity of a foundational blockchain network, often measured by its transaction throughput, latency, and finality. It assesses how quickly and reliably the main blockchain can process and confirm transactions without relying on secondary scaling solutions. High layer 1 performance is crucial for supporting widespread adoption and complex decentralized applications. It determines the base network’s fundamental capabilities.
Context ∞ Discussions surrounding layer 1 performance are central to evaluating the scalability and utility of various blockchain protocols. Projects frequently compete on metrics like transactions per second (TPS) and gas fees, seeking to balance decentralization and security with operational efficiency. Ongoing upgrades and architectural innovations aim to enhance layer 1 performance to meet the demands of a growing digital economy.