layer 1

What Is Layer1?

Layer1 refers to the foundational layer of a blockchain network. It is responsible for recording transactions on the public ledger, enabling participants to reach consensus, and ensuring that data cannot be altered arbitrarily. Layer1 determines transaction fees, confirmation speed, and overall network security, serving as the backbone of the entire crypto ecosystem.

When you hear the term “consensus mechanism,” think of it as the method by which all participants agree on the state of the ledger. Leading Layer1 blockchains like Bitcoin and Ethereum use different consensus mechanisms to decide who gets to add the next block to the chain. “Smart contracts” are self-executing programs written on-chain that automatically perform actions like transfers or distributing rewards according to predefined rules; these run on various Layer1 networks (such as Ethereum).

What Is the Difference Between Layer1 and Layer2?

Layer1 is the main blockchain (mainnet), responsible for final settlement and security. Layer2 functions like a high-speed express lane, processing a large volume of transactions off-chain or on sidechains, then submitting the results back to Layer1 for security guarantees.

A common Layer2 solution is the “Rollup,” which bundles multiple transactions into a single summary that is then sent to Layer1 for verification. Using Layer2 typically offers lower fees and faster speeds, but ultimate asset security still relies on Layer1. Most users interact with DeFi or NFT applications via Layer2, but assets are ultimately secured and settled by Layer1.

How Does Layer1 Ensure Security?

Layer1 secures the network through consensus mechanisms and economic incentives. Proof of Work (PoW) operates like a computational competition—those who contribute more computing power have a higher chance to validate transactions. Proof of Stake (PoS) is more like a staking-based voting system—participants stake tokens for a chance to validate blocks, and malicious actors risk losing their stake.

“Finality” means that once a transaction reaches a certain depth of confirmations, it is considered irreversible. PoW often requires waiting for more blocks to minimize rollback risks, while PoS accelerates confirmation through validator voting and slashing mechanisms. Security also depends on having a decentralized validator set, high attack costs, and well-audited, battle-tested software.

How Is Layer1 Performance Measured? TPS, Block Time, and Finality Explained

Layer1 performance is commonly evaluated using three metrics: TPS (transactions per second), block time, and finality time. TPS reflects how many transactions the network can process per second. Block time is the interval between generating new blocks. Finality is the time it takes for a transaction to become irreversible.

Higher TPS and shorter block times generally lead to a better user experience and less transaction backlog but may compromise decentralization or increase complexity. In practice, TPS on Layer1s can range from single digits to tens of thousands, block times from seconds to minutes, and finality from a few seconds to several minutes. When choosing a Layer1, consider trade-offs in cost, stability, and security—do not focus solely on one metric.

What Are the Leading Layer1 Projects? How Do Ethereum, Bitcoin, and Solana Differ?

Major Layer1s include Ethereum, Bitcoin, Solana, BNB Chain, Avalanche, and others—each with its own focus.

Ethereum prioritizes security and programmability with a robust smart contract ecosystem. It uses PoS and works with Layer2 for scaling, making it ideal for complex DeFi and NFT applications. Bitcoin is designed as a store of value using PoW, with conservative rules and slow-to-change governance—suitable for long-term value storage and settlement. Solana focuses on high throughput and low latency, making it friendly for real-time applications but has experienced stability incidents in the past—users should monitor ongoing improvements and network governance. BNB Chain is compatible with Ethereum’s tooling, easy to use, and low-cost, but its decentralization and governance require scrutiny. Avalanche emphasizes fast finality and supports subnet architecture for custom applications.

How Should You Choose a Layer1 Network on Gate? What Should You Watch Out For When Depositing or Withdrawing?

When choosing a deposit or withdrawal network on Gate, you are effectively selecting among different Layer1 blockchains. Each network has its own address format, fees, and requirements (such as Memo tags).

Step 1: After selecting your asset on the deposit page, review the supported network list—for example, USDT may have “ETH,” “TRON,” “SOL,” etc., as different Layer1 options.

Step 2: Before copying your deposit address, ensure that the network selected on your external wallet or platform matches the Layer1 displayed on Gate. For instance, USDT sent via TRON cannot be deposited to an Ethereum USDT address.

Step 3: Start with a small test deposit before sending large amounts. Double-check that you have entered the correct address and Memo tag (if required) to avoid losing assets due to mismatched networks or missing tags.

Step 4: Understand differences in fees and speeds across Layer1s. Ethereum fees can spike during congestion; TRON or BNB Chain typically offer faster and cheaper transactions but differ in ecosystem support and security models—choose according to your needs.

Using the wrong chain or selecting an incorrect Layer1 can result in asset loss or complicated recovery processes. Always confirm both network and address before proceeding.

How to Evaluate Whether a Layer1 Is Worth Participating In

Evaluate a Layer1 by considering its security, performance, ecosystem maturity, and stability. Security covers consensus maturity, validator decentralization, and attack costs; performance includes fees, TPS, and finality; ecosystem refers to developer activity, tools available, and EVM compatibility; stability considers uptime history and upgrade governance.

First, define your use case—whether it is high-frequency micropayments, DeFi strategies, or NFT/gaming applications. Next, check if your preferred applications support the Layer1 in question and whether cross-chain bridges and wallets are reliable. Also assess long-term sustainability of fees and speed—not just short-term cost savings. Finally, prioritize fund security by choosing Layer1s with thorough audits, strong governance, and active communities.

Key Takeaways and Best Practices for Using Layer1

Layer1 forms the foundation of the crypto ecosystem—it determines security, transaction fees, speed, and underpins smart contracts and application ecosystems. Understanding the division of roles between Layer1 and Layer2 enables users to enjoy faster and cheaper experiences while ensuring that final settlement security remains with the main chain. When depositing or withdrawing assets on Gate, network selection is essentially choosing among different Layer1s—always double-check that the network matches the address and start with small transactions when testing new networks. Evaluate Layer1s by considering security, performance, ecosystem health, and stability according to your own needs—and always prioritize asset safety and risk control.

FAQ

I’ve heard that Layer1 is important—why isn’t it as fast as Layer2?

Layer1 prioritizes security and decentralization over speed. Every transaction must be validated by all network nodes to ensure data integrity—a process that inevitably slows down throughput. In contrast, Layer2 builds fast off-chain channels atop Layer1: transactions are first processed locally before being periodically settled on Layer1. This makes them faster but reliant on Layer1 for ultimate security.

Why Are Transaction Fees on Layer1 Sometimes So High?

Layer1 fees mainly depend on network congestion. When many users submit transactions simultaneously but block space is limited, users must pay higher fees to get their transactions prioritized—similar to surge pricing in ride-hailing apps during peak hours. Furthermore, fee structures differ significantly across projects: Bitcoin and Ethereum generally have higher fees, while Solana can offer much lower costs due to its higher throughput.

How Can Beginners Tell If a Layer1 Project Is Truly Decentralized?

True decentralization can be gauged using three main indicators: number of validator nodes (the more nodes, the broader participation), minimum stake required per node (lower requirements enable broader participation), and geographical distribution (avoiding excessive concentration in one region). Bitcoin is widely considered most decentralized due to its low barriers and large node count; some newer projects may boast advanced technology but have fewer validators or higher entry requirements—resulting in weaker actual decentralization.

How Are Layer1 Token Prices Related to Network Security?

The price of a Layer1 token directly impacts network security costs. If token prices fall significantly, attackers need less capital to acquire enough tokens to compromise the network—lowering overall security. Conversely, higher token prices raise attack costs and make compromising the network more difficult. This is why maintaining reasonable token prices is considered essential for long-term network health—extremes in either direction can be harmful.

How Can I Experience Different Layer1 Ecosystems on Gate?

Start by exploring major Layer1s: buy Bitcoin or Ethereum on Gate to learn basic operations; then try depositing into various wallets (such as MetaMask) on different networks to experience firsthand differences in speed, fees, and ecosystem diversity. Each Layer1 supports unique DeFi projects—Gate’s official guides provide step-by-step instructions for deposits and withdrawals. Always begin with small amounts when testing new networks to avoid losses due to operational errors.