Layer-1 Blockchain

Understanding Layer-1 Blockchain

A Layer-1 blockchain is a set of solutions that enhance the underlying protocol itself, resulting in a more scalable system overall. The two main solutions at the Layer-1 level are changes in the consensus protocol and the implementation of sharding.

Consensus protocol changes involve transitioning from outdated and resource-intensive protocols like proof-of-work (PoW) to more efficient and faster alternatives like proof-of-stake (PoS). An example of a project that has adopted this approach is Ethereum.

Sharding is another commonly used method to improve scalability at the Layer-1 level. Instead of processing transactions one by one, sharding divides transaction sets into smaller data sets known as “shards.” These shards can then be processed simultaneously by the network.

A key advantage of Layer-1 solutions is that they do not require any additional layers to be added to the existing infrastructure.