Layer-1

Intermediate
    Layer-1

    Layer-1 is the base blockchain technology that supports transactions and refers to underlying technology such as Bitcoin and Ethereum. The original blockchain networks, Layer-1 blockchains, could experience challenges related to scalability due to technological limitations.

     

    Layer-1 blockchain networks serve as the infrastructure where on-chain transactions are conducted. However, in addition to scalability, the Layer-1 networks could also experience limited throughput, offering lower transaction processing speeds. They also have higher transaction costs than the scaling solutions designed to operate on top of them. 

     

    These challenges led to the development of Layer-2 networks built on top of Layer-1 networks, offering improved scalability and efficiency. Such technologies, however, continue to rely on the underlying Layer-1 blockchain to provide security and consensus.

    Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.