Layer-1

A Layer-1 blockchain refers to a base network that has its own infrastructure and can run independently. Bitcoin and Ethereum are two examples of Layer-1 networks.

Sharding and consensus changes are the two most common solutions for Layer-1 blockchains. Sharding breaks transactions into smaller sets of data, known as ‘shards’, which allow for the network to handle transactions quicker and in higher volume, thus allowing for scaling more efficiently.

The other method for scaling is by adopting a more scalable consensus format. For example, projects like Bitcoin use a Proof of Work (PoW) consensus mechanism, which works well for security but lacks scaling and speed.

Key Takeaway

Layer-1 is typically defined as a base-layer blockchain.

Related Words

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Market cap refers to the total dollar value of a cryptocurrency in circulation. It is calculated by multiplying the token price by the total number of tokens.

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Circulating Supply

Circulating supply is the amount of a cryptocurrency currently on the market. The number can grow or shrink for various reasons.

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TradFi

Traditional finance, or TradFi, is a conventional approach to financial activities that relies on established institutions, such as banks, insurance companies, investment companies, and stock exchanges.

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Collection Value

Collection Value is the aggregated monetary value of all the NFTs in a collection.

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NFT Sales Volume Index (7D)

The NFT Sales Volume Index (7D) shows the price and number of editions of a non-fungible token (NFT) collection sold over a 7-day (7D) period.

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Crypto Asset

Crypto assets are transferable digital representations of value made possible by cryptography and blockchain technology.

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24H Volume

24H Volume shows the number of a cryptocurrency’s tokens traded over a 24-hour time frame.

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7D

7D, short for seven days, refers to price data that has been collected for a cryptocurrency over a 7-day period.

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Floor Price

Floor Price is equal to the lowest-priced NFT in a collection.

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Gas (ETH)

Gas is the cost of a transaction on the Ethereum network.

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