Layer 1
Layer 1 is the base blockchain itself, such as Bitcoin or Ethereum, where final settlement and security reside.
Explained simply
The blockchain world talks in layers. Layer 1 is the foundation: the actual network with its nodes, its consensus method and its currency.
Layer 1 is optimised for security and decentralisation, not speed. That is why it is often slow and expensive under high demand. This is the reason further layers are built on top of it.
From the familiar world
The central bank's payment system (Target2): it is the foundation, final and secure, but not designed to settle every coffee purchase individually. Card networks sit above it for that.
An example
Bitcoin and Ethereum are the two largest layer-1 networks. Solana, Avalanche and others are younger layer 1s with different priorities, such as higher speed with less decentralisation.
Why it matters
Anyone who can distinguish layer 1 from layer 2 understands most news about "scaling" and "fees". And they can explain why there are many networks rather than just one.
To pass on
„Layer 1 is the foundation: secure and final, but not built for the small stuff.“
The content of this wiki is for general information and educational purposes only. It does not constitute investment advice, an investment recommendation or tax or legal advice. Digital assets are subject to strong price fluctuations and can lead to losses up to a total loss. Content as of 2026, no guarantee of completeness or timeliness.
21 Oaks Capital GmbH acts as a tied agent exclusively for the account and under the liability of AHP Capital Management GmbH, Weißfrauenstraße 12-16, 60311 Frankfurt am Main, Germany. This wiki is a general information service provided by 21 Oaks Capital GmbH. Its content does not constitute individual investment advice and is not a recommendation by AHP Capital Management GmbH. 21 Oaks Capital GmbH, its affiliated companies, the funds it advises or its employees may hold positions in assets explained in this wiki. The explanations are independent of this; the disclosure is made for reasons of transparency.