🏛️ PILLARS OF THE CRYPTO UNIVERSE: What are Layer 1 (L1) and why are they so important?
All the innovation in the crypto market is built on a foundation. This foundation is the Layer 1 (L1) blockchains. Understanding what they are is the first step to becoming a smarter investor.
What is a Layer 1?
It is the main and fundamental blockchain of an ecosystem. Think of it as the operating system (like Windows or iOS) on which all other programs and applications run. Its main function is to ensure security, decentralization, and the final record of all transactions.
Classic Examples:
👑 Bitcoin ($BTC ): The first and most secure L1, focused on being a digital store of value.
⚙️ Ethereum ($ETH ): The pioneering L1 of smart contracts, which allowed the birth of DeFi and NFTs.
⚡ Solana ($SOL ): A newer L1, focused on extremely high speed and low cost.
Why Investing in L1s is a Strong Thesis?
By betting on an L1, you are not investing in a single application, but in the success of the entire ecosystem that will be built on it. If the network grows in users and applications, the demand for its native token (used to pay transaction fees) is also likely to grow.