What is Layer 1?
A layer 1 is a base blockchain that processes and finalizes its own transactions, such as Bitcoin, Ethereum or Solana. Everything built on top of it — tokens, smart contracts, layer 2s — depends on its security.
Also known as: base layer · L1 · mainnet
In plain terms
Layer 1s are the foundation networks: they keep the ledger, run consensus among validators and set the rules for fees and block production.
Choosing a layer 1 means choosing the rules your asset lives under: its speed, cost, decentralization and the ecosystem of applications around it.
How it works
Each layer 1 defines how blocks are produced and validated — proof of work, proof of stake or a committee-based design — and how its native currency pays for computation and storage.
Transaction throughput, finality time and fee levels differ widely between chains, and those trade-offs are usually the reason a project picks one chain over another.
Assets on a layer 1 are secured by that chain's validators. If the network halts or is attacked, everything on it, including tokens and contracts, is affected.
Example
Hypothetical: a tokenized real-estate fund deploys its contracts on Ethereum because its investors and custodians already support it, accepting higher fees in exchange for mature tooling and deep liquidity; a competitor picks a faster, cheaper layer 1 and accepts a smaller ecosystem.
Why it matters for founders and investors
For token issuers, the layer 1 decision shapes compliance integrations, listing options and the cost investors pay to move in and out. For investors, it is a due-diligence question: is the chain secure, active and supported by the custody and exchange infrastructure the asset needs?
Common misconceptions
A newer or faster layer 1 is not automatically better for serious assets. Security track record, validator diversity and institutional support often matter more than raw transaction speed.
Frequently asked questions
What are the main layer 1 blockchains?
Bitcoin and Ethereum are the largest by value secured; Solana, Avalanche and several others compete on speed and cost. Each has different consensus, fee and governance models, so assets behave differently across them.
Can assets move between layer 1s?
Yes, through cross-chain bridges or by reissuing the asset on another chain. Bridges add a layer of risk because the assets locked on one side are held by the bridge's own contract set.