argot web3 core concepts explainer series
Your fast-reference library for understanding the core ideas behind Web3, digital assets, and decentralized technology.
Designed for business leaders, innovators, and decision-makers.
Your fast-reference library for understanding the core ideas behind Web3, digital assets, and decentralized technology.
Designed for business leaders, innovators, and decision-makers.
Summary:
A Layer-1 blockchain is the foundational infrastructure layer of a blockchain ecosystem.
It is responsible for:
- Processing transactions
- Maintaining the ledger
- Enforcing consensus rules
- Securing the network
All activity on the network ultimately depends on the Layer-1’s ability to agree on the state of the system. Any applications, tokens, or scaling solutions built on top of it inherit its security and limitations.
Examples of Layer-1 blockchains include Ethereum and Bitcoin, each of which defines its own rules, validators, and economic incentives.
Key Characteristics of Layer-1 Blockchains
Layer-1 blockchains typically:
- Operate as sovereign networks
- Have their own native asset
- Define security and finality guarantees
- Serve as settlement layers for activity above them
Because they sit at the base, changes to Layer-1 protocols tend to be slower and more conservative.
Why it matters for business:
Layer-1 choice affects:
- Security assumptionsLong-term stability
- Ecosystem maturity
- Governance predictability
For organizations, building directly on a Layer-1 often means prioritizing maximum security and neutrality, even if performance or cost tradeoffs exist.
Layer-1 Tradeoffs to Understand
Layer-1 blockchains must balance:
- Decentralization
- Security
- Scalability
Improvements to one dimension often constrain another, which is why many ecosystems introduce additional layers rather than endlessly modifying the base protocol.
Real-World Examples:
A financial settlement system built directly on a Layer-1 blockchain benefits from strong security and finality guarantees, making it suitable for high-value or trust-sensitive transactions.
Common Misconceptions
“Layer-1s are outdated.”
They remain the security backbone of blockchain ecosystems.
“Everything should run directly on Layer-1.”
Many applications prioritize cost and speed over base-layer settlement.
“Layer-1s are interchangeable.”
Each Layer-1 reflects different design philosophies and tradeoffs.
Related Concepts: Layer-2 Blockchains, Blockchain, Consensus, Finality, Rollups, Public Blockchains
One-Sentence Summary:
Layer-1 blockchains are base blockchain networks that independently handle transaction execution, security, and consensus without relying on another blockchain.
