What is Layer 1 blockchain?

Layer 1 Scalability

One of the most common problems with Layer 1 blockchains is their low scalability. As demands increases on a blockchain network, processing transactions might be challenging on big and popular blockchain networks like Bitcoin. The Bitcoin network works based on the Proof of Work “PoW” mechanism that requires a lot of computational powers and resources.

  • To increase the size of the block to increase the number of transactions processed per block.
  • To change the Proof of Work mechanism, like what we witnessed in the Ethereum blockchain network.
  • And finally, Sharding. Sharding is a new approach to partitioning a database.

What is Layer 1 Shading?

Sharding is a Layer 1 solution to improve the network’s throughput. Indeed, Sharding is a type of database partitioning applied to distributed blockchain headquarters. In this method, the network and the relevant nodes are divided into different Shards to divide the workload to increase the speed of transactions.

To Survey Differences between “L1” and “L2” blockchain Networks!

Sometimes, changes in blockchain networks can help development teams to improve the performance of the project blockchain network, but please note that this is not the medicine that always works.

Lightning Network

Layer 2 solutions are also built on a Layer 1 blockchain platform and rely on a Layer 1 network to finalize their transactions. An excellent example of these Layer 2 changes is the Lightning Network. Processing a single Transaction on the Bitcoin blockchain takes several hours, and it is because the network’s traffic is very high.

Conclusion

Today, there are a lot of Layer 1 blockchain networks and so many Layer 2 protocols in the cryptocurrency ecosystems. At first sight, users may be a little confused when they see these terms. But once they understand the meaning of these terms, it will be easier to understand the structure and the architecture of networks and blockchains.

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Minerium

Minerium is a Multi-currency decentralized smart crypto mining pool.