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GLOSSARYLayer-1

Layer-1


A Layer-1 blockchain refers to a base network that has its own infrastructure and can run independently. Bitcoin and Ethereum are two examples of Layer-1 networks.

Sharding and consensus changes are the two most common solutions for Layer-1 blockchains. Sharding breaks transactions into smaller sets of data, known as ‘shards’, which allow for the network to handle transactions quicker and in higher volume, thus allowing for scaling more efficiently.

The other method for scaling is by adopting a more scalable consensus format. For example, projects like Bitcoin use a Proof of Work (PoW) consensus mechanism, which works well for security but lacks scaling and speed.

Key Takeaway

Layer-1 is typically defined as a base-layer blockchain.

Related Words

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