The blockchain ecosystem is growing at an incredible speed. So we see the emergence of new concepts, solutions and programs in the blockchain world every day. About a decade ago, there were about ten cryptocurrencies, but today there are far more cryptocurrencies and blockchain networks. Expanding the use of blockchain networks depends significantly on their scalability, and this is where we need first-layer blockchain solutions.
In this article, we want to explain more about the first layer of the blockchain and its importance. We suggest that if you are not familiar with the zero layer of the blockchain and are interested in getting more information about it, refer to the article on the zero layer of the blockchain.
What is the need for the first layer of blockchain?
Before answering the question of what is the first layer of the blockchain, we need to go back a little. When it comes to blockchain technology, we unconsciously think of its benefits, including decentralization, scalability, and security, which means preventing third-party interference, transparency, immutability, and security.
But what about scalability? According to the founder of Ethereum, Vitalik ButerinBlockchain technology can provide only two functions at the same time. If you’re looking for decentralization and security, then you might have to sacrifice scalability. One of the best examples in this field is Bitcoin. Even if the Bitcoin blockchain is successfully decentralized and achieves high security conditions, it cannot scale well.
The importance of scalability for blockchain networks
Due to the huge scope of use of blockchain-based solutions and applications, scalability seems essential. Blockchain scalability can help expand the capacity of a network according to new requirements to increase processing power and speed. In addition, scalability helps facilitate the process of creating new applications on the blockchain and increase user activity. As a result, scalability is a critical factor for blockchain networks as it increases the volume of transactions, user interaction, and applications.
Definition of the first layer of the blockchain
The first layer solution is basically a set of solutions to improve the basic protocols. Minor changes made by layer one solutions to the underlying protocol help improve the scalability of the entire system. Many popular blockchain networks face scalability issues.
Blockchain developers have long invested in scalability solutions without considering alternatives. Observations show that layer one solutions can offer different approaches to scalability. For example, layer one solutions help increase the block size in the underlying protocol. As a result, the blockchain network can process more transactions in a given block.
Types of blockchain first layer solutions
In simple words, the first layer protocol of the blockchain should have the features of decentralization, security and scalability. Layer 1 networks can ensure better results for scaling through different approaches. Here are two examples of layer one blockchains for scalability:
consensus protocol
The first category of first layer solutions are focused on making changes in the consensus mechanism. Many conventional blockchain networks from Proof of work algorithm (PoW) which is a resource-intensive and slow consensus mechanism. Although the proof-of-work algorithm supports consensus and decentralized security through cryptography, it creates significant problems for scalability.
On the other hand, a blockchain layer one protocol can be Proof of stake algorithm (PoS) can also be used as a consensus mechanism. Proof-of-stake algorithm helps achieve decentralized consensus in the blockchain network while verifying transactions based on stake. Although the transaction speed increases, the proof-of-stake algorithm does not cover the security aspect. Therefore, to address scalability concerns and security issues, it is necessary to improve the first layer of the new blockchain.
Sharding
Sharding is a practical method of database segmentation that can be used in distributed ledger technology. Sharding is one of the reliable solutions in layer one scaling to increase network throughput and is currently considered as an experimental/experimental approach in the blockchain space.
In fact, in sharding, the network becomes a set of database blocks, each of which is called a shard. This type of division helps to properly distribute the workload and increase the speed of the operation. Each shard in a blockchain layer is responsible for managing the activity of the subgroup and its impact on the entire network. Therefore, each shard has its own transactions, blocks, and nodes, and nodes do not need to have a complete copy of the entire blockchain.
Advantages of blockchain layer one solutions
Undoubtedly, the most obvious advantage of using blockchain first layer solutions is Scalability Is. These solutions are used to make changes to the base protocol to improve scalability.
Another important point about layer one solutions, Better ecosystem development Is. Layer 1 scaling solutions can help accommodate new devices, technical advances, and other factors affecting the underlying protocols. Another important advantage is related to choosing the right blockchain. Depending on the scope of the blockchain-based project and intended use cases, layer-a-blockchain solutions can be identified to improve scalability.
Blockchain layer one projects
After reviewing the basic principles of the first layer of blockchain, how it works and its benefits, it’s time to take a look at real examples; To help you understand how these solutions are implemented in the ecosystem.
Elrond
Elrond is one of the well-known names in the first tier, which started its activity in 2018. The first layer of this blockchain uses sharding to improve performance and scalability. With a throughput of more than 100,000 transactions per second, we can say that the Elrond blockchain definitely has significant scalability. Two unique features of layer one of this blockchain Adaptive sharding And Proof of stake consensus mechanism Is.
Harmony
Harmony has an effective consensus mechanism based on proof of stake and sharding. In Blockchain Harmony, it is possible Four shards found All shards create and verify blocks at the same time and at their own speed, which is why it is possible to make a difference in block height. Currently, this blockchain uses a cross-chain financial strategy to attract users and developers. Most importantly, for scalability, Harmony focuses on a variety of decentralized self-governing organizations and zero-knowledge proofs.
Kava
Kava provides distinct first-layer blockchains for EVM and Cosmos SDK (Cosmos Development Kit). Kava is also from Tendermint consensus algorithm (Tendermint) is used to achieve scalability for applications on the shared EVM chain. In addition, Kava offers free development rewards to reward the top projects on each shared chain.
THORChain
Turchin’s first layer network is built using the Cosmos SDK development kit, and its network uses Tendermint’s consensus algorithm to confirm transactions. The most important goal of the Turchain network is to provide decentralized inter-chain liquidity without the need for wrapped assets.
The first layer of blockchain and the path ahead
The use of blockchain in various industries is expanding, and it is hoped that by making changes in the basic protocol, the performance of blockchain first layer networks can be improved. In fact, blockchain networks struggle with scalability issues to ensure security and decentralization. However, developers can find a solution to achieve decentralized and secure networks without scalability issues. Layer 1 scaling solutions not only improve network throughput, but also change the rules and challenges for deployment. In this article, we tried to point out the importance of these solutions and their key role in some blockchain projects. In the end, we hope this article was useful for you.
What is the first layer of blockchain? Getting to know blockchain layer one for the first time on Wallex blog. appeared.
