Layer 1

What are Layer 1 cryptocurrencies?

A Layer 1 is a base blockchain with its own rules for recording transactions and deciding which version of the ledger is valid. Bitcoin and Ethereum are familiar examples, but base networks can make very different choices about consensus, programmability and who can run a validator. Their native coins belong to the network itself; application tokens issued on top of a chain are a different kind of asset.

How it works

Native coins may pay transaction fees, reward miners or validators, and secure proof-of-stake networks through staking. A busy blockchain does not automatically make every associated token valuable: issuance, fee design and token ownership also matter. Compare actual network use with token supply, validator concentration and the costs of running the network. Layer 2 networks build on a base chain, while bridges introduce a separate mechanism for moving assets between networks.