What Is a Layer-1 Blockchain?
Layer-1 blockchain is a classification of blockchain networks with its own consensus algorithm and functions as an independent network. It serves as the base layer of blockchain architecture, enabling the development of decentralized applications (if smart contracts are supported), scalability solutions, and other blockchain-native infrastructure.
Layer-1 blockchains also have native assets classified as “coins,” which are used to pay for transaction fees. For example, two of the most popular and highly capitalized Layer-1 blockchains — Bitcoin and Ethereum — have native coins BTC and ETH.
What Is a Consensus Algorithm?
A consensus algorithm is a mechanism used to create and validate blocks of transactions on a blockchain. Since a Layer-1 blockchain acts as a transparent database containing records of all transactions (accessible to everyone), which are processed by miners or validators to maintain the network, the consensus mechanism ensures that all participants in the network have the same version of the database containing the transaction records, and no one can create fake transactions.
Two of the most commonly used consensus algorithms are Proof of Work (PoW) and Proof of Stake (PoS).
In Proof of Work, blocks of transactions are processed by miners who use computational power to find a valid hash for the block (a unique identifier of the block). Once a valid hash is found, the block is added to the blockchain, and the miner receives a reward in the network’s native coin. This reward is typically generated from block rewards and the transaction fees. Bitcoin, mentioned earlier, uses this type of consensus algorithm.
In Proof of Stake, blocks are processed by validators. Instead of relying on computational power, validators are required to stake the blockchain’s native coins and install a node to process blocks. The term Proof of Stake comes from the fact that validators stake their coins as collateral, showing they have something to lose if they act dishonestly. This method is more energy-efficient and is used in networks like Ethereum, dYdX Chain, Avalanche, and others.
Key Metrics for Evaluating Layer-1 Projects in 2025
Of course, different Layer-1 blockchains serve different purposes, whether it’s building decentralized applications as a developer or interacting with the chain by storing cryptocurrency or using it within the chain’s ecosystem. Regardless of the purpose, there are several core metrics that help evaluate the strength and potential of any Layer-1 project:
- Ecosystem size: The number and variety of decentralized applications available on the blockchain indicate how broad the range of DeFi tools is for both users and developers.
- Performance statistics: Metrics like TPS (transactions per second) and average transaction fees help assess the network’s speed, cost-efficiency, and overall scalability potential.
- Compatibility with other blockchains: The ability to easily move assets to and from the network — for example, via cross-chain bridges — reflects how well it integrates with the broader crypto ecosystem.
- Consensus algorithm type: Helps determine how participants can take part in securing the network as miners or validators and earn rewards for their role in maintaining the network.
Conclusion
Layer-1 blockchains form the foundation of the blockchain ecosystem, providing the core infrastructure for security and decentralized application development. In this article, you’ve explored the best Layer-1 projects in 2025, along with their key characteristics, evaluation metrics, and unique features.
FAQ
Layer-1 blockchains are independent networks with their own consensus algorithms and native tokens. They serve as the base layer of blockchain architecture. Layer-2 blockchains are built on top of Layer-1s to improve scalability and reduce costs without changing the underlying base layer.
Proof of Work (PoW) is a consensus algorithm where miners use computational power to find a valid cryptographic hash, thereby validating and adding new blocks that include processed transactions.
Proof of Stake (PoS) is a consensus algorithm where validators stake coins to process and validate blocks. It’s more energy-efficient than PoW and is used by blockchains like Ethereum, BNB Smart Chain, and dYdX Chain.
There is no universally accepted “fastest” Layer-1, as performance depends on how speed is measured — typically by transactions per second (TPS) and block finality time. For example, dYdX Chain is among the fastest networks for decentralized perpetual trading.
Choosing a Layer-1 depends on your needs: consider ecosystem size, developer tools, transaction fees, scalability, user base, and cross-chain compatibility.