Layer One

Definition ∞ Layer one refers to the foundational blockchain network upon which other decentralized applications and protocols are built. Prominent examples include Bitcoin and Ethereum, which provide the core infrastructure for transaction processing and security. These base layers are responsible for consensus mechanisms and maintaining the integrity of the ledger. Innovations at layer one often dictate the scalability and functionality of the entire ecosystem.
Context ∞ The current discourse around layer one blockchains is dominated by discussions on scalability solutions and the transition to more energy-efficient consensus mechanisms, such as proof-of-stake. Key debates involve the comparative advantages of different layer one architectures in terms of security, decentralization, and transaction throughput. Future developments to monitor include the impact of protocol upgrades on network performance and the competition among various layer one ecosystems to attract developers and users.