Crypto

Layer 1

Also calledL1 · base layer

Layer 1 is a blockchain’s primary network and settlement layer, including its own transaction history, consensus rules, and block-production process. Bitcoin and Ethereum are examples of layer 1 blockchains; systems built above them may use the layer 1 for settlement, data, or security.

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Record updated
August 18, 2026

Layer 1 — definition, practical meaning, example, and common interpretation risk checked against the linked reference material

Definition checked

  • Definition and plain-English explanation for “Layer 1”
  • The worked example and the distinction described in the watch-out note
  • Reference material: Ethereum.org — Ethereum Glossary, Ethereum.org — What is layer 2?

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What Layer 1 means

A layer 1 is the underlying chain that participants validate directly under that network’s rules. It records its own blocks and determines which transactions are valid. The term is often used when comparing a base chain with a layer 2 system that processes some activity separately and then anchors or settles information on the base chain. Not every connected chain is a true layer 2.

The layer 1 determines core trade-offs such as its consensus mechanism, transaction capacity, fee market, and finality rules. When moving assets or using an application, it is important to identify which network actually holds the asset and what security assumptions apply. A bridge, sidechain, or app can introduce risks beyond the layer 1 itself.

A user sends ETH on Ethereum Mainnet, so the transaction is executed and settled on Ethereum’s layer 1. If the user instead moves ETH to a separate scaling network, that network may process later transfers more cheaply. Returning or resolving those transfers can depend on the scaling network’s design, bridge, and Ethereum settlement process.

Common questions

Is a layer 1 the same as a cryptocurrency?+

No. A layer 1 is the underlying blockchain network. Its native cryptocurrency may be used for fees, staking, or incentives, but tokens issued by smart contracts on that chain are not themselves layer 1 blockchains.

Are all networks connected to a layer 1 considered layer 2s?+

No. The label depends on how the network works and what it inherits from the base chain. Sidechains, validiums, and bridges can have different validator sets, data arrangements, or trust assumptions from a layer 2.

Go to the original material.

01Ethereum.org — Ethereum Glossary02Ethereum.org — What is layer 2?