Layer 1 Blockchains Explained and Compared
Layer 1s are the base networks of crypto. We explain how they differ in consensus, speed and decentralisation, and collect our in-depth reviews of individual Layer 1 chains.
Neo, BNB Chain, and Alphea Build Layer-1 Networks Exclusively for Autonomous AI Agents
Multiple Layer-1 networks are now building infrastructure designed exclusively for autonomous AI agents, eliminating the human from the transaction loop entirely. Neo co-founder Da Hongfei formalized…
Latest in this topic
What is a Layer 1 blockchain?
A Layer 1 (L1) is a blockchain that processes and finalises transactions on its own, secured by its own validators or miners. Bitcoin and Ethereum are the best-known examples. Everything else in crypto – rollups, bridges, DeFi applications, NFTs – ultimately depends on one or more Layer 1s for settlement and security.
Because an L1 is the foundation, its design choices are hard to change later. Block size, consensus, the virtual machine and the token model shape what can be built on top for years.
The trade-offs every Layer 1 makes
Layer 1 designers balance three goals that pull against each other, often called the blockchain trilemma:
- Security – how expensive it is to attack the chain or rewrite its history.
- Decentralisation – how many independent parties run the network and how easy it is to join them.
- Scalability – how many transactions the network can process and how quickly they become final.
Raising throughput usually means bigger blocks, faster block times or more powerful hardware for validators. Each of these can reduce the number of people able to run a node, which is why high-performance chains often have fewer, more professional validators.
How major Layer 1 designs differ
| Network | Consensus | Block rhythm | Design focus |
|---|---|---|---|
| Bitcoin | Proof of Work | About 10 minutes per block | Security and monetary neutrality |
| Ethereum | Proof of Stake | 12-second slots | General-purpose smart contracts, rollup settlement |
| Solana | Proof of Stake with a leader schedule | Slots of roughly 400 ms | High throughput on a single shard |
| Cosmos Hub | CometBFT (BFT Proof of Stake) | A few seconds, final once committed | Interoperable app-chains via IBC |
The table simplifies a lot. Finality – the point after which a transaction cannot be reversed – differs from block time. Ethereum blocks arrive every 12 seconds, but economic finality takes about two epochs. BFT chains finalise each block once it is committed, at the cost of a smaller validator set.
How to compare Layer 1 networks
Headline transactions-per-second figures say little on their own, because they are often measured with simple transfers in ideal conditions. When we compare L1s we look at:
- time to finality and fees during periods of high demand,
- the number of validators and how stake is distributed,
- hardware requirements for running a full node,
- client diversity – whether more than one independent software implementation exists,
- the history of outages and how they were handled,
- developer activity and real on-chain usage.
Layer 1 vs Layer 2 scaling
Ethereum’s roadmap moves most user activity to Layer 2 rollups, which execute transactions off-chain and post data back to Ethereum. Other L1s try to scale the base layer directly, for example with parallel execution, sharding or new consensus protocols. Both paths are valid; they simply put complexity in different places.
Risks to keep in mind
Young L1s often launch with a small validator set, a large token allocation for insiders and frequent protocol upgrades. Check who controls upgrades, how much of the supply is staked by the foundation or early investors, and whether the chain has halted before. Our individual reviews point out these risks for each network.
Frequently asked questions
Is Ethereum a Layer 1?
Yes. Ethereum is a Layer 1 blockchain. Rollups such as Arbitrum, Optimism or zkSync are Layer 2 networks that settle on Ethereum.
Why are there so many Layer 1 blockchains?
Each L1 makes different trade-offs between security, decentralisation and scalability, and some target specific use cases such as payments, privacy or enterprise applications.
What makes one Layer 1 better than another?
It depends on the use case. Finality, fees, decentralisation, security track record and ecosystem matter more than headline throughput figures.
This page is for educational purposes only and is not financial, investment or tax advice. Crypto assets are volatile and you can lose all of the money you invest.
