What is Layer 1? An explanation of the blockchain technology that underpins the foundation of virtual currencies
Table of Contents
- Characteristics of each layer1
- Layer 1 each market capitalization and supply data
- Layer 1 each data (approval method, listing date, etc.)
introduction
In the virtual currency world, "Layer 1″ refers to the basic infrastructure layer of the blockchain. This layer forms the basic protocols and rules of the blockchain and is responsible for processing and recording transactions. Today, major blockchains such as Bitcoin, Ethereum, Cardano, and Solana fall under this layer 1.
Key Features of Layer 1 Blockchain
ビットコインis the first cryptocurrency to use Proof of Work (PoW). While it has high security and widespread recognition, it has transaction speed and scalability challenges. On the other hand,Ethereumis the first blockchain to run smart contracts and is currently transitioning to Proof of Stake (PoS).CardanoやSolana (star in the constellation Ursa Minor)also uses a proprietary consensus mechanism and offers different characteristics, such as fast transaction processing capacity and low commissions.
Importance of Layer 1 and its challenges
Layer 1 blockchain enables the exchange of digital assets in a secure and reliable manner. This has enabled digital currencies, smart contracts, and distributed applications (DApps). However, it faces challenges in scalability and processing speed, and Layer 2 solutions are being developed to address these issues.
Characteristics of each layer1
| virtual currency | Funciton |
|---|---|
| Bitcoin (BTC)Details | First cryptocurrency to use Proof of Work (PoW). Highly secure and widely recognized, but has transaction speed and scalability challenges. |
| Ethereum (ETH)Details | The first blockchain to run smart contracts. Originally used PoW, but is transitioning to Proof of Stake (PoS) with Ethereum 2.0. Highly flexible, but high fees and network congestion can be problematic. |
| Cardano (ADA) | A "third generation" blockchain, developed with a research-based approach, using the PoS consensus mechanism "Ouroboros" and aiming for high scalability and sustainability. |
| Solana (SOL) Details | Known for its fast transaction processing capacity and low fees. It employs a proprietary consensus mechanism, Proof of History (PoH), which is increasingly used, especially in the decentralized finance (DeFi) and NFT markets. |
| TRON (TRX) | A fast, scalable blockchain platform focused on content sharing and entertainment. |
| Binance Coin (BNB) | Utility token based on the Binance chain, primarily used to pay transaction fees on the Binance exchange. |
| Avalanche (AVAX) | It features fast transaction processing capacity and low fees, making it suitable for building custom blockchain networks. |
| Kronos (CRO) | Crypto.com's blockchain, with a focus on fast transactions and ecosystem expansion. |
| Kava | Blockchain for DeFi applications and services, based on the Cosmos network. |
| Toe Chain (RUNE) | A decentralized liquidity protocol that allows token exchange between different blockchains. |
| SUI | A new blockchain aiming for high performance and scalability. |
| CELO | Blockchain for financial inclusion by adopting a mobile-first approach. |
| Ronin (RON) | Sidechain designed specifically for Axie Infinity games. |
| Hedera (HBAR) | A distributed ledger technology that features fast transactions and low fees and employs the "Hashgraph" consensus. |
| Internet Computers (ICP) | The project aims to build a distributed Internet, providing a high degree of scalability and computational power. |
Layer 1 each market capitalization and supply data
| virtual currency | Current Market Capitalization (USD) | Diluted market capitalization (USD) | total supply | Maximum supply | ranking |
|---|---|---|---|---|---|
| Bitcoin (BTC) | 42,703 | – | – | 21,000,000 | 1 |
| Ethereum (ETH) | 2,551.98 | – | – | – | 2 |
| Cardano (ADA) | 0.542937 | – | 45,000,000,000 | 45,000,000,000 | 7 |
| Solana (SOL) | 96.64 | – | – | – | 5 |
| TRON (TRX) | 0.116222 | – | 100,850,743,812 | – | 14 |
| Binance Coin (BNB) | 302.19 | – | 170,532,785 | 170,532,785 | 3 |
| Avalanche (AVAX) | 36.06 | – | – | – | 10 |
| Kronos (CRO) | 0.00010174 | – | 30,263,013,692 | 100,000,000,000 | 25 |
| Kava | 0.763476 | – | – | – | 59 |
| Toe Chain (RUNE) | 4.58 | – | – | – | 45 |
| SUI | 1.25 | – | – | – | – |
| CELO | 0.787374 | – | 1,000,000,000 | 1,000,000,000 | 71 |
| Ronin (RON) | 1.81 | – | – | – | 94 |
| Hedera (HBAR) | 0.080018 | – | 50,000,000,000 | 50,000,000,000 | 32 |
| Internet Computers (ICP) | 13.29 | – | – | – | 27 |
The market capitalization figures in this table are approximate and may vary slightly due to market fluctuations. Rankings are based on market capitalization and change frequently.
Layer 1 each data (approval method, listing date, etc.)
| virtual currency | approval system | Listing Period | central organization | advocate | Official site URL |
|---|---|---|---|---|---|
| Bitcoin (BTC) | PW | 2009 | nashi (Pyrus pyrifolia, esp. var. culta) | Satoshi Nakamoto | bitcoin.org |
| Ethereum (ETH) | PoW (in transition to PoS) | 2015 | nashi (Pyrus pyrifolia, esp. var. culta) | Vitalik Buterin | ethereum.org |
| Cardano (ADA) | point of sale | 2017 | nashi (Pyrus pyrifolia, esp. var. culta) | Charles Hoskinson | cardano.org |
| Solana (SOL) | PoH | Year 2020 | nashi (Pyrus pyrifolia, esp. var. culta) | Anatoly Yakovenko. | solana.com |
| TRON (TRX) | DPoS | 2017 | nashi (Pyrus pyrifolia, esp. var. culta) | Justin Sun. | tron.network |
| Binance Coin (BNB) | PoSA | 2017 | Binance (Japanese stock exchange) | Champong Cao. | binance.com |
| Avalanche (AVAX) | point of sale | Year 2020 | nashi (Pyrus pyrifolia, esp. var. culta) | Emin Gün Sheeler. | avalabs.org |
| Kronos (CRO) | PoA | 2018 | Crypto.com | – | crypto.com |
| Kava | point of sale | 2019 | nashi (Pyrus pyrifolia, esp. var. culta) | Brian Kerr | kava.io |
| Toe Chain (RUNE) | point of sale | 2019 | nashi (Pyrus pyrifolia, esp. var. culta) | – | thorchain.org |
| SUI | – | – | – | – | – |
| CELO | point of sale | Year 2020 | nashi (Pyrus pyrifolia, esp. var. culta) | – | celo.org |
| Ronin (RON) | – | – | Axie Infinity | – | – |
| Hedera (HBAR) | Hashgraph | 2019 | nashi (Pyrus pyrifolia, esp. var. culta) | Lehman Baird. | hedera.com |
| Internet Computers (ICP) | Chain Key technology | Year 2021 | nashi (Pyrus pyrifolia, esp. var. culta) | Dominic Williams | dfinity.org |
This table includes information on approval method, listing date, central authority, advocate, and official website URL, but this information is based on general information. For the most up-to-date information, please refer to the official website of each virtual currency or other reliable sources.
References:COINGEKO
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