What is the difference between a layer 1 and Layer 2 blockchain?

In the decentralized ecosystem, a Layer-1 network refers to a blockchain, while a Layer-2 protocol is a third-party integration that can be used in conjunction with a Layer-1 blockchain. Bitcoin, Litecoin, and Ethereum, for example, are Layer-1 blockchains.

What is layer 1 & Layer 2?

Layer 1 and layer 2 are terms that help us understand the architecture of different blockchains, projects, and development tools. If you've ever wondered about the relationship between Polygon and Ethereum or Polkadot and its parachains, learning about the different blockchain layers will help. What is layer 1?

What is a blockchain Execution Layer?

The execution layer comprises chain code, smart contracts, and the underlying logic that execute commands and maintain the blockchain’s determinism. The categories used above are used to describe the underlying architecture of blockchain networks in general.

What is a layer 1 cryptocurrency?

Bitcoin: Bitcoin’s layer 1 is the underlying architecture that secures the world’s largest cryptocurrency, top ranked with a live market cap of $367 billion. It operates on a proof-of-work consensus mechanism, which verifies new blocks via an algorithm that uses an computationally-intensive, cryptographic puzzle.