🤔Layer 1 Protocol
In the context of cryptocurrency and blockchain, Layer 1 protocols refer to the base protocol of a blockchain network, which defines the fundamental rules and architecture of the network. Layer 1 protocols are responsible for the consensus mechanism, block structure, and transaction validation.
Some examples of Layer 1 protocols in crypto include:
1. Bitcoin Protocol (BTC): the original blockchain protocol that enables peer-to-peer electronic cash transactions.
2. Ethereum Protocol (ETH): a decentralized platform that enables smart contracts and decentralized applications.
3. Ripple protocol (XRP) : Ripple is a decentralized, open-source blockchain network that uses a consensus mechanism called the Ripple Protocol Consensus Algorithm (RPCA) to validate transactions and secure its network.
4. Binance Smart Chain (BSC): a fast and low-cost blockchain platform for decentralized finance (DeFi) applications.
5. Solana Protocol (SOL): a fast and scalable blockchain platform that uses a proof-of-history (PoH) consensus mechanism.
6. Cardano Protocol (ADA): a decentralized public blockchain that uses a proof-of-stake (PoS) consensus mechanism.
7. Polkadot Protocol (DOT): a decentralized platform that enables interoperability between different blockchain networks.
8. Cosmos Protocol (ATOM): a decentralized network of independent, parallel blockchains.
Layer 1 protocols in crypto provide the foundation for building decentralized applications, issuing tokens, and conducting transactions. They are the base layer of the blockchain architecture and play a crucial role in ensuring the security, scalability, and decentralization of the network.
In contrast, Layer 2 protocols are built on top of Layer 1 protocols and provide additional functionality, such as scaling solutions, privacy enhancements, and cross-chain interoperability.
Thanks for Reading and Please note that this is a Not Financial Advice
