Blockchain Basics

A Layer 1 Blockchain represents the base protocol and underlying infrastructure responsible for maintaining the fundamental aspects of a Blockchain network: security, consensus, transaction processing, and data availability. As the foundation layer, it operates independently without relying on another network.

Blockchain technology combines distributed ledger systems with cryptographic mechanisms to create secure, transparent, and tamper-resistant record-keeping. The innovation of Blockchain lies in its ability to enable parties that do not necessarily trust each other to exchange value and information without requiring intermediaries. This is achieved through a consensus mechanism that validates transactions and maintains the integrity of the ledger across a distributed network of nodes. Key components of Layer 1 Blockchains include:

● A decentralized ledger that maintains a distributed database synchronized across multiple nodes

● Consensus mechanisms that establish rules governing agreement on the state of the Blockchain

● Native cryptography that protects transactions and user identity

● A native token that facilitates network operations and incentives

● Smart contract support that enables programmable logic on the Blockchain