Layer one demand refers to the direct utilization and transaction activity occurring on a blockchain’s foundational protocol layer. This encompasses the processing of native transactions, smart contract executions, and data storage directly on the main chain. It represents the fundamental utility and traffic handled by the base layer of a decentralized network. High demand indicates robust direct use of the core blockchain.
Context
Layer one demand is a crucial metric for evaluating the intrinsic value and congestion levels of a base blockchain, frequently discussed in relation to network fees and scalability solutions. Current debates often contrast this demand with activity on layer-two scaling solutions, examining the distribution of usage. A critical future development involves how the increasing adoption of off-chain processing and rollups might redistribute transaction load, thereby altering the dynamics of demand on the primary layer.
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