Comprehensive Analysis on Leading Layer 1 Blockchains

A layer 1 blockchain is a type of blockchain that is designed to provide a high level of security and reliability. It is built on top of a secure underlying infrastructure, and it has a number of features that make it well-suited for enterprise use. Layer 1 blockchains are typically used to create new cryptocurrencies or to store data, often used together with the term ‘Layer 2.’  

A layer 2 blockchain is a separate blockchain that extends the initial network and inherits the security guarantees of that initial underlying network. 

Unlike layer 2, a layer 1 blockchain is a blockchain that is directly implemented into the network protocol. This allows the blockchain to be used as a native protocol for exchanging information and value between nodes. Some key features of layer 1 blockchains include: 

– Decentralization: Layer 1 blockchains for the most part are decentralized, meaning that there is no central authority controlling the network. This allows the network to be operated by its participants, rather than a third party. 

– Security: Layer 1 blockchains are secure, meaning that it is difficult to hack or tamper with them. This makes layer 1s a trusted source of information and value exchange. 

– Scalability: Layer 1 blockchains are scalable, meaning they can handle a large number of transactions at one time without slowing down (some do these things better than others, as we will discuss).  

These three things play a key role when thinking about what potential value layer 1s could bring to businesses, organizations, and individuals… Nobody wants to wait 10 minutes for their ETH transaction to settle, especially after witnessing instantaneous transactions on ICP.  

If you’d like to learn more about decentralization, security, and scalability of blockchains, otherwise what’s dubbed as the Blockchain Trilemma, you can check out our article “Does Total Decentralization Exist?” 

Now that we have an idea of what layer 1 blockchains are, we’re going to breakdown the leading layer 1 blockchains in terms of market capitalization by: Total Value Locked (TVL), Fastest Transaction Throughput, Energy Consumption, Active Development, and more!