The popular digital currency “cryptocurency” is very famous around the world. The currency get the name cryppto due its encryption quality. This generally indicates that advanced coding is required to store. Moreover, it is used to transfer cryptocurrency data to and from public ledgers and wallets. Encryption intends to give security and well-being. The underlying infrastructure of a base network. Such as Ethereum, trx usdt, or sweat usdt, is referred to as Layer 1. Without the need for a second network, Layer-1 blockchains can verify and conclude transactions. As demonstrated by Bitcoin, enhancing the scalability of layer-1 networks is challenging. Layer-2 protocols that basically depend on layer-1 are developed as solutions. Before recording them into the main chain. Users can make transactions without restriction. KuCoin has more than 400 markets and over 200 cryptocurrencies. It has emerged as one of the best cryptocurrency exchanges.
What is layer 1?
A layer-1 organization is one more name for a base blockchain. Ethereum (ETH), Bitcoin (BTC), and Solana. Because these are the primary networks that make up their ecosystem. We refer to them as layer 1. Off-chains and other layer-2 solutions are the main chains, unlike layer-1. Put another way, when a protocol processes and completes transactions on its blockchain, it is layer 1. They additionally have their local token, used to pay for exchange expenses.
Layer 1 scaling
The inability to scale is a common issue with layer-1 networks. In times of increased demand, Bitcoin and other large blockchains have struggled to process transactions. The Proof of Work (PoW) consensus method is utilized in Bitcoin. Necessitates a significant amount of computational power. Even though the developers of blockchain are in continuous search of finding solutions of scalability. There still needs to be more debate about which alternatives are best. Some options for layer-1 scaling include:
- Increasing the block size allows more transactions to be processed in each block.
- Modifying the used consensus mechanism, as with the forthcoming Ethereum 2.0 update.
- Putting sharding into use is partitioning in databases.
Layer 1 upgrades require huge work to execute. As a rule, only some of the organization’s clients will consent to the change. This can result in community divisions or even a hard fork. As was the case with Bitcoin and Bitcoin Cash in 2017.
How does layer-1 sharding work?
For boosting transaction throughput, sharding is a popular layer-1 scaling technique. Blockchain-distributed ledgers can be used with this method. Which is a type of database partitioning. To spread out the work and speed up transactions, a network’s nodes are divided into various shards. Since each shard is responsible for managing a subset of the entire network’s activity. It has its transactions, nodes, and blocks.
Examples of the layer 1 blockchain
Now that we understand the layer let’s look at some examples. There are a lot of different layer-1 blockchains. Many of them support particular use cases. Blockchain technology’s trilemma of decentralization, security, and scalability. It has different solutions for each network, so Bitcoin and Ethereum are only some of the options.
The 2018-founded layer-1 network Elrond uses sharding to boost its scalability and performance. Over 100,000 transactions can be processed per second (TPS) on the Elrond blockchain. Its two distinctive main features. These are the consensus protocol.
Sharding is supported in Harmony, with an EPos also regarded as the effective stake pool of layer-1 network. Each of the four shards on the blockchain’s mainnet simultaneously creates and verifies new blocks. This can be done at the speed of each shard, allowing them to have different block heights.
THORChain is a permissionless cross-chain decentralized exchange (DEX). It is a Cosmos SDK-based layer-1 network. Additionally, the Tendermint consensus mechanism is utilized for transaction validation. The primary objective of THORChain is to make it possible for decentralized cross-chain liquidity. Without requiring assets to be pegged or wrapped. Pegging and wrapping make the procedure riskier for investors in multiple chains.
There are generally several layer-1 networks and layer-2 protocols in the current blockchain ecosystem. It’s easy to get lost, but once you understand the fundamentals. It becomes easier to comprehend the architecture and structure. This article with its authentic information will be helpful when researching brand-new blockchain projects. Particularly those are focusing on cross-chain solutions and network interoperability.