A Layer One network is the foundational blockchain protocol, such as Bitcoin or Ethereum, that processes and settles transactions directly on its main chain. These networks establish the core security, decentralization, and transaction validation mechanisms for their respective ecosystems. They serve as the primary ledger where all transactions are ultimately recorded and verified. Scalability challenges on Layer One networks often lead to the development of Layer Two solutions.
Context
The performance and security of Layer One networks are central to the overall health of the digital asset market. News reports frequently discuss upgrades, congestion issues, and competitive developments among different Layer One protocols. Their fundamental role in supporting decentralized applications and digital assets makes them a constant focus of technical and market analysis.
The Arc Layer-1 testnet establishes a dedicated, compliant settlement layer, accelerating the institutional shift to tokenized assets and programmable liquidity management.
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