Layer 1 Blockchain
The foundational layer of a blockchain ecosystem — the main chain that processes and records all transactions. Bitcoin and Ethereum are the most well-known Layer 1 blockchains. All Layer 2 solutions build on top of a Layer 1.
Why It Matters
A layer 1 blockchain is the base layer of a blockchain network, like Bitcoin or Ethereum. It matters because it dictates scalability, speed, and security of transactions, affecting all applications built on top of it.
Example
For example, Bitcoin serves as a layer 1 blockchain that processes its own transactions directly on its network. Changes or updates to its capabilities require consensus among its users and miners.
Beginner Context
As a beginner, learning about layer 1 blockchains can help you understand the foundational technology behind various cryptocurrencies. This knowledge is vital for exploring more complex projects built on these networks.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Gas Price
The amount a user is willing to pay per unit of gas, usually quoted in gwei on Ethereum. Higher gas prices get transactions processed faster when the network is congested; lower prices can leave transactions pending.
NFT
Non-Fungible Token. A unique digital asset on a blockchain that represents ownership of a specific item such as art, music, or virtual real estate.
Private Key
A secret cryptographic key that gives the holder control over a cryptocurrency wallet and the ability to sign transactions. It must be kept secure and never shared.
Mainnet
The primary production blockchain network where actual transactions occur, as opposed to a testnet used for development and testing.
Multi-Sig
Multi-Signature. A wallet security feature requiring multiple private keys to authorize a transaction, reducing the risk of unauthorized access.