Once again this year, we want to brighten up the Advent season for our readers with an Advent calendar. In a slightly different form, each door contains a “knowledge bomb” that will be supplemented with a special prize on Christmas Day.
Right on time for the first of December, we are starting our Advent calendar with the first door. This door hides the term Layer 1. To take part in the prize draw on the 24th, simply take part in the polls and like the respective Twitter posts.
Layer 1
Layer 1 blockchains are the foundation of the crypto architecture and serve as a medium for transaction processing. Their mission is to validate and execute transactions. Analogous to the blockchain trilemma, Layer 1 blockchains have to specialize in two of the three pillars decentralization, security and scalability – a central issue since last year.
To ensure a high degree of decentralization and security, the two largest blockchain networks, Bitcoin and Ethereum, compromise on scalability. This led to network congestion during the raging bull market, characterized by expensive and slow transactions. In response, the market took refuge in alternative Layer 1 blockchains. This helped various competitors to rise to prominence at a rapid pace. Examples include Solana, BSC, Avalanche and Near.
