The blockchain network is expanding at unprecedented speeds,unprecedented for any technological innovation. Every day, new ideas, techniques, and concepts emerge in the realm of blockchain. Almost a decade earlier, there were only a few dozen cryptocurrencies. Today, there are various cryptocurrencies and blockchain platforms.
But, the growth and use of different blockchains are dependent on their durability. This is where layer 1 blockchain technologies might be useful.
What exactly are Layer 1 blockchain solutions ?
Layer 1 is a base network that finishes transactions without the use of a secondary network. The layer 1 base networks include the bitcoin, Ethereum, TechPay, and BNB chains. A layer-1 blockchain enhances the fundamental protocol to make the system more scalable. The consensus protocol modifications and sharding are the two main prevalent layer-1 methods. The nice thing about layer-1 systems is that nothing needs to be added to the current infrastructure.
When it relates to consensus procedures, platforms like Ethereum are transitioning from older, cumbersome methods like proof-of-work to far quicker and less energy-intensive protocols like proof-of-stake. When a protocol executes and completes payments on its blockchain, it is considered layer 1. They also get their native coin, which they use to make transaction cost.
Sharding is now one of the most widely used layer-1 scalability techniques. Rather than having a network operate consecutively on each activity, sharding divides these payment sets into huge datasets known as “shards,” which may then be handled in simultaneously by the system.
Types of Layer 1 Blockchain Solution
A layer 1 blockchain system must, at a minimum, provide democratization, safety, and durability. In various ways, layer 1 blockchain networks may ensure greater scalability outcomes. Here are two sorts of layer 1 blockchain examples based on the sustainability methodologies they use.
Scaling at Layer 1
Many traditional blockchain systems employ Proof of Work, a resource-intensive and time-consuming consensus process. While Proof of Work promotes distributed consensus and safety through encryption, it has significant drawbacks in terms of scalability.
A layer 1 blockchain system, on the other hand, may use Proof of Stake as the decision method. Proof of Stake aids in the achievement of various aggregate on a blockchain system, as well as the verification of block transactions based on stakes. Furthermore, Proof of Stake sacrifices security in exchange for faster transaction speeds. As a result, new layer one blockchain enhancements are required to address scalability challenges while increasing safety.
The difficulty of layer-1 systems to scale is a prevalent issue. In peak times, Bitcoin and other large blockchains have struggled to make payments. Bitcoin employs the Proof of Work (PoW) consensus process, which necessitates a significant amount of computer resources.
While PoW promotes decentralization and safety, it also causes Proof – of – work systems to slow down when trading volumes are too large. This lengthens faster transaction times and raises costs.
Blockchain programmers have been researching scaling solutions for many decades, but there is still much debate over the best choices. Some choices for layer-1 scalability are:
- By expanding block size, more payments may be completed in each block.
- Updating the consensus process, as with the forthcoming Ethereum 2.0 version.
- Sharding is being implemented. This is a type of database segmentation.
Layer 1 enhancements need a large amount of effort to deploy. In many circumstances, not all internet users will agree with the modification. This can result in society splits or even a difficult fork, as occurred in 2017 with Bitcoin and Bitcoin Cash.
Sharding at layer 1
Sharding is a well-known layer-1 scaling strategy for increasing computational efficiency. The method is a type of database segmentation that may be used with blockchain-based distributed ledgers.
Sharding is one of the most trustworthy layer 1 scaling strategies for boosting transaction speed. Sharding is also an innovative concept in the blockchain world as yet. It entails dividing a system into a set of various database pieces, often known as shards. The split of the system and its nodes aids in the effective allocation of workload while also allowing for faster transaction rates. Every shard in a layer 1 blockchain would be in charge of controlling a fraction of the platform’s activities. As a result, each shard has its own set of information, blocks, and nodes.
In the instance of sharding in layer 1 blockchain instances, each node is not required to keep a full copy of the entire blockchain. Also, on the opposite, nodes submit finished product transactions to the main chain and communicate the condition of local storage, such as address amounts and other statistics.
7 Examples of layer 1 blockchain
There are several instances of layer 1 blockchain. Layer 1 blockchains include numerous others besides bitcoin and Ethereum. Furthermore, each system has a unique answer to the blockchain technology trilemma of decentralization, security, and sustainability. Some of the examples of Layer 1 blockchain are:
- TechPay
- Harmony
- Celo
- THORChain
- Kava
- Index
- Elrond
1. TechPay
The layer-1 system TechPay, which launched in 2022. On the TechPay blockchain, over 300,000 activities might potentially be executed every second.
The Covid-19 pandemic caused a delay in the project in 2020, and it was later restarted in December of the same year. In January 2022, a private network of servers linked in the same network swamped the TechPay stable release with transactions to test its stability.
When compared to other well-known decentralized blockchain networks, it was shown that the network can handle a significantly higher volume of transactions. Following this testing, it was stated that the TechPay Mainnet will be online internationally in March. The first exchange, LBank, then listed TechPay so that consumers could trade it internationally.
In addition to a special consensus algorithm based on DAG-based distributed ledger technology, the TechPay Chain will leverage the Consensus Algorithm (CA) to enhance performance and security. Byzantine Fault Tolerant (BFT) technology, which ensures that existing blockchains have the same degree of consensus, is what this CA-based system strives to achieve.
TechPay Chain is a next-generation public blockchain that uses encryption to increase the security of transactions. It boosts security and transaction processing speeds up to 300,000 TPS in addition to a novel consensus approach based on a distributed ledger with a DAG.
The TechPay DAG is a reliable and creative way to communicate as well as store non-changing data. By creating connections between event blocks, this protocol creates a networked system that can store any data in smart contracts or tales based on the values of earlier events.
An event in the TechPay DAG is connected to a central figure who controls how events and blocks are organized. New occurrences from earlier rounds are verified more often as they arise. The LCA attempts to be asynchronous when two identical transactions are requested, and only one is checked at a time. The order of these jobs is determined by the Main Chain list algorithm, which uses assistance from other nodes around the network to organize for higher accuracy invalidation.
2. Harmony
Harmony is a layer-1, efficient proof of stake (EPoS) system that provides sharding. The platform of the blockchain includes four shards, each of which concurrently generates and verifies new blocks. Because each shard may move at its rate, it can all have varying block heights.
Today, Harmony employs a “Cross-Chain Finance” approach to draw consumers and programmers. Users can swap their currencies without the normal custodial concerns associated with bridges thanks to the crucial role played by permission-less bridges between Ethereum (ETH) and Bitcoin. Distributed Independent Organizations (DAOs) and zero-knowledge proofs are the cornerstones of Harmony’s fundamental idea for expanding Web3.
Harmony is a layer-1 network that uses effective proof of stake (EPoS). Users find Harmony’s bridge solutions appealing since the development of DeFi (Decentralized Finance) appears to be centered on prospects for multi-chain and cross-chain transactions. The key focus areas are NFT architecture, DAO tools, and inter-protocol gateways.
System transaction costs are paid using its native coin, called ONE. It may also be pledged to take part in the administration and consensus process of Harmony. This offers block incentives and processing fees to competent verifiers.
3. Celo
From Go Ethereum (Geth), a layer 1 network called Celo was split in 2017. Furthermore, it has made several important adjustments, such as introducing PoS and a distinctive address scheme. DeFi, NFTs, and payment options are all part of the Celo Web3 network, which has verified more than 100 million operations. Anyone may use an address or phone number as a master password on Celo. The blockchain doesn’t need specialized hardware and can be readily operated on regular PCs.
The core token of Celo is CELO, a typical use token for payments, protection, and incentives. Digital currencies for the Celo network include cUSD, cEUR, and cREAL. Consumers produce these, and a system resembling MakerDAO’s DAI is used to preserve their pegs. Additionally, payments for transactions performed with Celo altcoins can be made using any other Celo currency.
With its stable coin and IP mechanism, CELO hopes to increase the acceptance of cryptocurrency. Many people may be discouraged by the cryptocurrency market’s instability and challenges facing newbies.
4. THORChain
A cross-chain that makes for a great cryptocurrency exchange is THORChain (DEX). To use the Cosmos SDK, a layer-1 network was constructed. It also validates payments using the Tender mint consensus protocol. Distributed cross-chain financing without any need to cap or package assets is the core objective of THORChain. Goosing and bundling increase process risk for multi-chain customers.
In essence, THORChain manages the vault and keeps track of cash withdrawals. By doing so, centralized middlemen are eliminated and decentralized liquidity is established. The native token of THORChain, RUNE, is utilized for governance, safety, and verification as well as for paying trading fees.
RUNE serves as the basis pair in THORChain Automatic Market Maker (AMM) architecture, making it possible to exchange RUNE for another accepted commodity. The project functions something like a cross-chain Uniswap, with RUNE serving as a safe asset and resolution asset for liquidity pools.
5. Kava
With the efficiency and compatibility of Cosmos and the developer-friendly environment of Ethereum, Kava is a layer-1 blockchain. The Kava System offers a unique blockchain for both the EVM and Cosmos SDK development platforms using a “co-chain” design. Publishers are now able to release decentralized apps that easily interact across the Cosmos and Ethereum environments thanks to IBC compatibility on the Cosmos co-chain.
Kava leverages the Tender mint PoS consensus algorithm, giving the EVM co-applications chain strong scalability. The Kava System is supported by the Kava DAO, includes open, on-chain development rewards intended to honor the top 100 applications on each co-chain based on consumption.
Both KAVA, the native utility and administration token for Kava, and USDX, a stablecoin tied to the US dollar, are available. Payment costs are paid with KAVA, which auditors stake to create a system agreement. Customers can assign their committed KAVA to verifiers to receive a cut of the KAVA output. Stakers and verifiers can also cast votes on proposals for good governance that set the rules for the system.
6. IoTeX
A layer 1 system called IoTeX was established in 2017 to fuse blockchain internet technology of Things. Giving consumers authority over the information their gadgets produce makes “machine-backed DApp, products, and activities” possible. Keeping your private data on a blockchain ensures safe custody and gives it value.
With the help of IoTeX’s hardware and software, individuals now have a new way to manage their private information without compromising their experience for users. Machine Fi is the name of the technology that lets people generate digital content from their actual data.
Ucam and Pebble Tracker are two prominent hardware items that IoTeX has released. Ucam is a cutting-edge home surveillance system that enables customers to keep an eye on their properties from everywhere in total secrecy. A smart GPS with 4G connectivity and track-and-trace features is Pebble Monitor. It records real-time data from the environment, such as heat, moisture, and water quality, in addition to GPS data.
7. Elrond
Elrond is a layer-1 system that was established in 2018 and employs sharding to increase its flexibility and scalability. Over 100,000 operations may be processed per second on the Elrond blockchain (TPS). Its Stable Proof of Stake consensus algorithm and Reactive State Partitioning are its two standout key characteristics.
As the system eliminates or adds users, responsive state sharding occurs through shard breaks and mergers. Sharding affects every aspect of the platform’s architecture, along with its state and operations. Additionally, validators switch between shards, which lessens the possibility of a hostile takeover of a shard.
The native currency of Elrond, EGLD, is employed for transaction costs, DApp deployment, and paying users who take part in the network’s validation system. Additionally, because it cancels more CO2 than its PoS technique is responsible for, the Elrond system is recognized as Carbon Negative.
Advantages of Blockchain Layer 1 Services
- Scalability is undoubtedly the advantage of layer 1 blockchain technology that is most noticeable. For increased scalability, layer one blockchain technologies entail modifications to the entire system. As a result, layer one blockchain solutions essentially assist you in maintaining the main benefits of distributed ledger technology.
- High throughput and financial viability are provided via a layer 1 blockchain system for decentralization and safety.
- A key advantage of layer one blockchain technologies is the potential for improved ecosystem growth. To accommodate additional tools, technological advancements, and other elements in the basic conventions, layer 1 scaling methods may be useful. Layer 1 scaling technologies might therefore act as a crucial starting point for innovation in the larger blockchain network.
- The choice of the appropriate blockchain is the second significant value benefit of items in a layer 1 blockchain list. You may find layer one blockchain applications to increase flexibility based on the scale of your blockchain-based enterprise and the targeted use applications.
