Definition ∞ Layer-1 trading refers to the direct exchange of digital assets that occurs on the primary blockchain network itself, without relying on off-chain solutions or secondary layers. These transactions are recorded and settled directly on the main chain. This method provides the highest level of security and decentralization inherent to the base protocol.
Context ∞ Layer-1 trading is valued for its security and direct settlement, though it often presents challenges related to transaction speed and cost, especially during periods of high network activity. The current discussion centers on optimizing base-layer protocols to enhance efficiency for direct asset transfers. Future developments aim to balance the core security benefits with improved performance for a wider array of trading activities.
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