A base blockchain is also known as a Layer 1 network. Layer 1 protocols include BNB Smart Chain (BNB), Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Since these are the parent networks in your ecosystem, we refer to them as Layer 1. We have off-chain and other Layer 2 solutions that build on top of the parent chains, in contrast to Layer 1 solutions.
In other words, when a protocol performs and completes transactions on its own blockchain, it is considered layer 1. Additionally, they have a native token that they use to cover transaction costs.
Layer 1 scaling
The inability of Layer 1 networks to scale is a frequent problem. In times of increased demand, Bitcoin and other large blockchains have struggled to process transactions. The Proof-of-Work (PoW) consensus algorithm used by Bitcoin uses a lot of computing power.
Although PoW guarantees decentralization and security, PoW networks also tend to slow down when there are too many transactions. As a result, fees increase and transaction confirmation times lengthen.
Although blockchain developers have focused on scalability issues for a while, there is still a lot of debate about the optimal options. Options for Layer 1 scaling include:
- Increase the block size to accommodate more transactions per block.
- Modify the chosen consensus method, as will be done with the impending Ethereum 2.0 upgrade.
- Making use of fragmentation. a technique for partitioning databases.
Implementing improvements from Layer 1 requires a lot of work. It is common that not all network users accept the changes. This can result in community splits or perhaps a hard fork, as happened in 2017 with the split between Bitcoin and Bitcoin Cash.
Bitcoin SegWit is an example of a Layer 1 (segregated witness) scaling solution. By rearranging the block data, this boosted Bitcoin’s performance (digital signatures are no longer part of the transaction input). The modification increased the amount of space available for transactions in each block without compromising the security of the network. A soft fork that was backward compatible was used to implement SegWit. This implies that transactions can still be processed by Bitcoin nodes that have not yet been upgraded to support SegWit.
How does layer 1 fragmentation work?
A popular Layer 1 scaling technique for increasing transaction throughput is sharding. The method is a type of database partitioning that can be used with distributed ledgers on blockchains. To distribute the workload and increase transaction speed, a network and its nodes are divided into many shards. Each fragment controls a part of the network activity; therefore, each shard has its own distinct transactions, nodes, and blocks.
Each node does not have to maintain a full copy of the entire blockchain thanks to sharding. To relay the status of its local data, including address balances and other important metrics, each node reports the work done to the main chain.
Comparison of layers 1 and 2
Not all issues with enhancements can be resolved in layer 1 of the model. On the blockchain mainnet, some changes are difficult or nearly impossible to implement due to technological limitations. For example, Proof of Stake (PoS) is being updated on Ethereum, although this procedure took years to develop.
Due to scalability difficulties, some use cases simply cannot work with layer 1. Due to slow transaction speeds, a blockchain game could not realistically utilize the Bitcoin network. However, the game can still use Layer 1 security and decentralization. The best option is to implement a Layer 2 solution over the network.
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=();t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)(0);s.parentNode.insertBefore(t,s)}(window,document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);fbq(‘init’,’504526293689977′);fbq(‘track’,’PageView’)
