What is a layer 1 blockchain? The base networks crypto runs on
By SendPay Business · · 2 min read
A layer 1 blockchain is a base network that records and settles transactions on its own, with its own coin and its own rules for agreeing which transactions are valid. Bitcoin, Ethereum and Solana are all layer 1 blockchains.
What makes a network layer 1
- It keeps its own ledger of every transaction.
- It has its own way for nodes to agree, such as proof of work or proof of stake.
- It has a native coin used to pay fees, such as BTC, ETH or SOL.
- It doesn't rely on another blockchain for final settlement.
The trade-offs
Builders often talk about a trilemma: it is hard for one network to be fast, highly secure and widely decentralised all at once. Some layer 1s keep blocks small so more people can run nodes, while others aim for speed with fewer, more powerful machines.
How layer 2 fits in
Layer 2 networks run on top of a layer 1, handle transactions more cheaply, and send summaries back to the base chain for settlement. The Lightning Network on Bitcoin and rollups on Ethereum are examples.
Where SendPay fits
SendPay platforms let customers buy, sell and hold crypto, held with regulated partners, alongside GBP, EUR and USD accounts, powered by licensed partners. SendPay doesn't offer trading tools, DeFi or lending.
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Two ways blockchains agree on which transactions are valid.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.