What is Bitcoin Layer 1?

Read Time:49 Second

Bitcoin Layer 1: The Foundation of the Bitcoin Network

Bitcoin Layer 1 refers to the base blockchain protocol that underpins the Bitcoin network. It includes the core architecture, consensus mechanism (Proof of Work), security, and fundamental transaction processes. As the primary layer, it ensures decentralization, security, and immutability but faces scalability challenges due to limited transaction throughput and high fees during network congestion.

Key Features of Bitcoin Layer 1:

Proof of Work (PoW) Consensus – Ensures network security through mining.
Decentralization – Operates without a central authority, secured by thousands of nodes.
Scalability Limits – Processes around 7 transactions per second (TPS), leading to congestion.
Security & Immutability – Transactions are irreversible once confirmed on the blockchain.
Native Asset (BTC) – Bitcoin operates natively on Layer 1 without intermediaries.

Challenges & the Need for Scaling

Due to Bitcoin Layer 1’s scalability limitations, solutions like Layer 2 protocols (e.g., the Lightning Network) have emerged to enable faster and cheaper transactions while maintaining Bitcoin’s security and decentralization.