For anyone who wants to be involved in cryptocurrency and blockchain, it is vital to have a basic understanding of what Layer 1 blockchain are. These platforms contain core functions that include capturing transactions and validating data. Below are a few reasons why these layer 1 solutions are critical.
Foundation for Applications: Layer 1 blockchains are the base layer for decentralized applications (dApps), decentralized finance (DeFi), nonfungible tokens (NFTs), and plenty of others.
Transaction Speed and Cost: The various Layer 1 blockchains also have varying speeds and costs. For instance, Bitcoin is secure, but the transaction speed is slower than that of Solana or Binance Smart Chain.
Innovation and Development: Some blockchains, such as Ethereum and Cardano, promote the creation of applications; hence, there are many tools, projects, and communities associated with them.
Bitcoin (BTC)
Bitcoin is the first blockchain application, currently the biggest Layer 1 blockchain cryptocurrency. Launched in 2009 by a person or a group of persons with the pseudonym Satoshi Nakamoto, Bitcoin is a decentralized digital currency that does not involve the conventional financial system.
Why is Bitcoin a Top Layer 1 Blockchain?
Bitcoin is one of the safest and most reliable currencies today. Being a decentralized currency, it uses “miners” to check transactions via PoW. This process makes it almost impossible for any unauthorized person to alter any Bitcoin transaction that has been conducted. The Bitcoin network has remained uninterrupted for more than a decade, which makes it a very reliable platform for other blockchains and cryptocurrencies.
Key Highlights:
Security: Bitcoin’s blockchain is very secure, making it very hard for hackers to modify transaction information.
Limited Supply: One of the most significant factors is that there will only be 21 million Bitcoins. This limitation in maximum supply maintains its scarcity and value.
Widely Accepted: With its popularity Bitcoin has became a widely accepted cryptocurrency. Many merchants, business entities, and investors across the globe have started accepting Bitcoin as payments.
At press time, Bitcoin was trading at $72,449.62 – up by 1.74% in the past 24 hours. It has gained 13.29% over the past 30 days, and has a market capitalization of $1.43 trillion.
Ethereum (ETH):
Another leading layer 1 Blockchain that introduced smart contracts is Ethereum (ETH). Founded by Vitalik Buterin in 2015, Ethereum restricts currency transfers and allows developers to design decentralized applications (dApps), making them more unique.
Why is Ethereum Popular?
Ethereum’s smart contracts enable individuals to set conditions of cause and effect on the blockchain. For instance, Ethereum can be used to build games, financial applications, and digital economies. It also supports the increasing world of decentralized finance and non-fungible tokens.
Key Highlights:
Smart Contracts: Enables the development of applications directly on the blockchain platform.
DeFi and NFTs: Ethereum is the most popular blockchain behind today’s DeFi and NFT projects.
Transitioning to (PoS): The largest altcoin is Ethereum, which is transitioning to a new proof-of-stake system that is more environmentally friendly.
Vitalik Buterin Outlines Ethereum’s Future Post-MergeAt the time of writing, Ethereum was priced at $2,678 and a 24-hour change of 2.02%. Within the past month, Ethereum was up by 1.66% to a total market capitalization of $322.58 billion.
Binance Smart Chain (BSC):
Binance Smart Chain is an open-source blockchain that was developed by Binance, the world’s number one cryptocurrency exchange platform and it was established in 2020. BSC is built to be faster and cheaper than Ethereum, addressing all issues of slow scaling and high fees and at the same time supporting smart contracts and dApps.
Why is Binance Smart Chain Popular?
The low transaction rate of BSC makes it a preferred choice. Also the robust structure of the BSC network paves way for faster transaction making it an ideal layer 1 solution.
Binance Aids Indian Police to Dismantle Solar Scam; 100K USDT SeizedKey Highlights:
Low Fees: BSC has a low transaction fee, and this makes it cheap for the users to use it.
Fast Transactions: BSC processes transactions fast, which makes it unique compared to other blockchains.
Growing dApp Ecosystem: BSC has many dApps and DeFi projects that BSC supports, which presents many possibilities to the users.
Furthermore, BSC is integrated with Ethereum tools which makes it suitable for users who want to make their transactions fast while at the same time reducing the cost. As of press time, Binance Coin (BNB) stands at a market capitalization of $87.88 billion. It is priced at $601.41, with a price increase of 4.23% over the past 30 days.
Solana (SOL):
Solana (SOL) is an Layer 1 blockchain focusing on speed and throughput. This can handle thousands of transactions per second, making it one of the fastest Layer 1 blockchain in the market today.
Why is Solana a Top Contender?
The reason for the speed of the Soalna blockchain is because it utilizes PoH (proof of history) alongside PoS (proof of stake). Proof of history provides a unique certificate for each transaction proving its ordered in time. This brings innovation that allows Solana to perform transactions very efficiently and at the lowest charge.
Key Highlights:
High Speed: It is a Layer 1 blockchain that can handle about 65,000 transactions per second.
Low Costs: The gas fees charged on the Solana network are very low.
Ideal for NFTs and DeFi: Due to its high speed and low cost, Solana is now a go-to platform for NFTs and DeFi projects.
Solana’s high speed and low fees make it the ideal blockchain for users requiring a scalable and cheap Layer 1 network. As of press time, Solana (SOL) is trading at $177.74 and has slipped by 1.66% in the last 24 hours. The market value stands at $83.63 billion and over the past month the price has ascended by 14.31%.
Cardano (ADA):
Another top Layer One blockchain is Cardano, symbolized by the ADA token. This protocol is also famous for its emphasis on security and ecological preservation. Established by Charles Hoskinson, one of the co-founders of Ethereum, Cardano is an attempt to provide a more environmentally friendly and optimally scaled blockchain through a scientific approach.
Why Cardano Stands Out?
Cardano employs a proof-of-stake consensus algorithm known as Ouroboros that is much more efficient than a proof-of-work. Its development is well thought out and follows a peer-reviewed process, which has helped garner the support of the community, academics, and researchers.
Key Highlights:
Eco-Friendly: Cardano’s PoS model consumes much less power than other blockchains.
Research-Driven: The fundamentals of Cardano are based on research and peer review.
Growing Ecosystem: As the innovative contract functionalities, dApps and DeFi projects are being onboarded to Cardano PLATFORM.
A focus on sustainability is a rarity in the Layer 1 blockchains and is one of the reasons why many are drawn to Cardano. At the time of writing, ADA is trading at $0.3558; this has surged by 2.66% in the last 24 hours and 12.20% over the previous 30 days.
Conclusion
Knowing the basic characteristics of the top Layer 1 blockchains is essential for anyone who wants to start investing and develop dApps. Layer 1 blockchains have all the vital features that are needed for any transaction, application, and project related to the blockchain – security, speed, cost, and sustainability. These Layer 1 platforms would become very important as the crypto space grows and will be instrumental in the future of financial technology.
