Why are L1 blockchains considered the base layer?

As the cornerstone of the L1 blockchain network, it builds a trusted, secure and efficient basic environment for upper-level applications through core consensus, ledger records, security and security guarantees.

Feb 25, 2025 at 05:41 pm

Construction of core consensus mechanism

Blockchain relies on a consensus mechanism to ensure that node reconciliation status is agreed upon. L1 blockchain takes the lead in defining and executing core consensus such as Proof of Work (PoW) and Proof of Stake (PoS). Like Bitcoin’s PoW, nodes obtain accounting rights through computing power competition, laying the cornerstone of trust.

Initial record of ledger data

All blockchain transaction data must be recorded in the ledger. The L1 blockchain is the first place to record transaction data, and the details of each transaction are fully recorded. The Ethereum L1 ledger stores various transactions such as smart contract deployment, transfer and other transactions in chronological order, and is the source of subsequent data traceability.

The fundamental guarantee of the security system

Security is the lifeline of blockchain. L1 blockchain ensures security with complex encryption algorithms and distributed node verification. For example, Monero L1 uses ring signature technology to conceal transaction information, and mutual verification between nodes ensures that the ledger is not tampered with, building a solid security line for upper-level applications.

The builder of network architecture

L1 blockchain builds the topological structure of the entire blockchain network. Define how nodes connect, communicate and collaborate. Taking EOS's L1 network as an example, it adopts the super node architecture under the DPoS consensus, stipulates node responsibilities and interaction methods, and supports the operation of the entire network.

Issuance and management of native tokens

Native tokens are the core of the blockchain economic system. L1 blockchain is responsible for issuing and managing its own tokens, setting rules such as the total token quantity and issuance method. Litecoin has a total of 84 million coins at the L1 level, and through mining and issuance, it determines the basis of the token value.

The basic operating environment of smart contracts

For blockchains that support smart contracts, L1 provides the basic operating environment. Ethereum L1's EVM (Ethereum Virtual Machine) provides a place for compilation, deployment and execution of smart contracts, allowing various complex application logic to be implemented.

The basic support for cross-chain interaction

In the multi-chain era, cross-chain interaction is crucial. L1 blockchain serves as the basis to provide underlying support for cross-chain. For example, Cosmos' L1 allows different blockchains to communicate with each other and transfer assets through IBC (cross-chain communication protocol), which is the foundation of the cross-chain ecosystem.

The basics of authentication and permission management

Blockchain applications require authentication and permission management. The L1 blockchain provides a basic identity authentication mechanism to confirm user identity based on public and private key pairs. At the same time, basic permission rules are set to determine the user's permission to reconcile the account book to ensure the orderly operation of the system.

The maker of incentive mechanisms

In order to encourage nodes to participate in and maintain the network, incentive mechanisms are indispensable. L1 blockchain formulates incentive rules, such as Bitcoin mining rewards and transaction fees, to incentivize miners to invest in computing power to maintain the network and ensure that the blockchain continues to operate.

Development of standard protocols

Blockchain development requires unified standards. L1 blockchain formulates basic protocols, defines data formats, interface specifications, etc. For example, Hyperledger Fabric's L1 formulates Fabric Token standards, standardizes the issuance and management of on-chain tokens, and promotes the standardization of blockchain.

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