Layer 1, or L1, in cryptocurrency refers to the fundamental blockchain layer of a network. It serves as the foundation for all transactions and data storage within the system. This layer is responsible for maintaining the network’s security, decentralization, and consensus mechanisms.
At the L1 level, protocols are designed to handle the basic functions of the blockchain, such as data validation, block creation, and transaction processing. These protocols ensure that all network participants have the same copy of the blockchain and that transactions are recorded accurately and securely.
By focusing on the core infrastructure of the blockchain, Layer 1 protocols aim to establish a strong foundation for the entire network. This foundation is crucial for building higher layers of the blockchain, such as smart contracts and decentralized applications, which rely on the security and reliability of Layer 1.
Overall, Layer 1 plays a vital role in the functionality and integrity of a cryptocurrency network. It forms the basis for all subsequent layers to operate effectively and securely.
