Layer One Protocol
Sovereign Assets, Layer 1s, Payment Networks
Layer One Protocol is the foundational blockchain architecture that forms the base layer of a network. It handles the core functions like consensus, security, and transaction processing. Examples include Bitcoin, Ethereum, XRP Ledger, and Solana. Layer One protocols can operate independently and support decentralized applications (dApps) and smart contracts built directly on their chains.
Use Case: Developers can deploy DeFi applications or NFT marketplaces directly on a Layer One protocol like Ethereum or Solana without needing additional scaling layers.
Key Concepts:
- Consensus Mechanism — Defines how agreement is achieved across the network.
- Validator Node — Participants that secure the protocol and process transactions.
- Settlement Finality — Ensures confirmed transactions cannot be reversed.
- Security Model — The framework that protects the Layer One chain from attacks and fraud.
Summary: Layer One protocols are the foundation of blockchain ecosystems, providing the base security and functionality upon which applications and higher-layer solutions are built.