Layer 1: The Base Blockchain
What makes a chain a 'Layer 1', and why everything else settles back to it.
What 'Layer 1' means
Layer 1 just means the base blockchain itself - the network with its own validators, its own consensus rules, and its own native token. Bitcoin is a Layer 1. Ethereum is a Layer 1. So are Solana, Avalanche, and dozens of others.
When people call something 'a blockchain' with no other qualifier, they usually mean a Layer 1: a self-contained system that doesn't depend on any other chain to function.
One layer, four jobs
A Layer 1 bundles together everything a blockchain needs to do on its own: it orders and executes transactions, reaches consensus on the result, publishes the underlying data so anyone can check it, and settles - makes the outcome final and irreversible.
Because one network handles all four jobs itself, a transaction confirmed on a Layer 1 doesn't need any other chain to vouch for it. That self-sufficiency is exactly what later lets other systems borrow its security, which is where Layer 2s come in.
Trade-offs baked into the base layer
Every Layer 1 makes choices. More validators and stricter hardware-independence tend to mean stronger decentralization and security - but also a lower ceiling on how many transactions the network can process per second.
A chain can loosen those constraints to go faster, but it's spending some decentralization or security to get there. There's no free lunch at the base layer - which is exactly the tension the next lesson names directly.
Remember
No single Layer 1 has 'solved' this trade-off - different chains simply choose different points on the spectrum.
Concept map · schematic
Execution and Ethereum settlement
A conceptual rollup lifecycle; actual guarantees vary by network.
- 01
Layer 2
Orders and executes transactions on its own chain
- 02
Publish data
Posts commitments and data through L1 transactions or blobs
- 03
Settlement
Applies proof/challenge rules to secure resulting state
Important: A sequencer confirmation is not identical to final settlement on Ethereum.
Self-check
Check your understanding
Choose an answer for each question, then check the results and explanations.
Primary references
Documentation and standards
References added
Official technical references for further verification. A source link is not a guarantee that every earlier editorial sentence has been reverified; provider specifications may also change over time.
The curriculum predates this reference index. These sources are offered to check technical details; no original publication date has been inferred.
- Optimistic rollupsethereum.orgRead source ↗
- EIP-4844 blob transactionsEthereum Improvement ProposalsRead source ↗
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