Coinranking
| # | Coins | Price | 24h | ||
|---|---|---|---|---|---|
| | |||||
| | 1 |  | $ | -2.53%  | |
| | 2 |  | $ | -4.31%  | |
| | 3 |  | $ | +0.84%  | |
| | 4 |  | $ | -1.63%  | |
| | 5 |  | $ | +1.16%  | |
| | 6 |  | $ | -3.96%  | |
| | 7 |  | $ | -4.33%  | |
| | 8 |  | $ | -6.95%  | |
| | 9 |  | $ | -4.96%  | |
| | 10 |  | $ | -4.92%  | |
| | 11 |  | $ | -3.99%  | |
| | 12 |  | $ | -5.17%  | |
| | 13 |  | $ | +5.24%  | |
| | 14 |  | $ | +4.77%  | |
| | 15 |  | $ | +2.46%  | |
| | 16 |  | $ | -8.28%  | |
| | 17 |  | $ | -11.34%  | |
| | 18 |  | $ | -4.55%  | |
| | 19 |  | $ | -3.26%  | |
| | 20 |  | $ | -4.84%  | |
| | 21 |  | $ | -0.77%  | |
| | 22 |  | $ | -6.66%  | |
| | 23 |  | $ | -0.65%  | |
| | 24 |  | $ | -8.58%  | |
| | 25 |  | $ | -5.29%  | |
| | 26 |  | $ | -1.93%  | |
| | 27 |  | $ | -3.88%  | |
| | 28 |  | $ | -3.51%  | |
| | 29 |  | $ | -6.04%  | |
| | 30 |  | $ | -3.95%  | |
| | 31 |  | $ | -0.07%  | |
| | 32 |  | $ | -1.17%  | |
| | 33 |  | $ | -4.84%  | |
| | 34 |  | $ | -4.73%  | |
| | 35 |  | $ | -1.68%  | |
| | 36 |  | $ | -3.85%  | |
| | 37 |  | $ | -6.28%  | |
| | 38 |  | $ | -5.22%  | |
| | 39 |  | $ | +3.63%  | |
| | 40 |  | $ | -5.06%  | |
| | 41 |  | $ | -5.32%  | |
| | 42 |  | $ | -5.67%  | |
| | 43 |  | $ | -6.54%  | |
| | 44 |  | $ | -4.93%  | |
| | 45 |  | $ | -5.91%  | |
| | 46 |  | $ | -4.47%  | |
| | 47 |  | $ | -12.88%  | |
| | 48 |  | $ | -10.38%  | |
| | 49 |  | $ | -6.35%  | |
| | 50 |  | $ | -4.14%  | |
Top gainers
| Coins | Price | 24h | |||
|---|---|---|---|---|---|
| |  | $ | +5.58%  | ||
| | | $ | +5.24% | ||
| | | $ | +4.77% | ||
| | | $ | +3.63% | ||
| | | $ | +2.46% | ||
| All gainers | |||||
What are Layer-1 coins?
In simple terms, Layer-1 coins are the native coins of Layer-1 blockchains.
A Layer-1 blockchain validates and supports its own network without requiring support from another network and reimburses transaction fees with cryptocurrencies.
An example of a Layer-1 coin is Ether (ETH). Ether runs on its own blockchain, Ethereum. Layer-1 blockchains are built for functionality but often lack scalability.
Scalability becomes an issue when more users utilize the network. A network that is unable to handle more users will cause network congestion and slow down or lag transaction times.
To counteract this, Layer-2 protocols are built upon the current Layer-1 blockchain. The Layer-1 network provides security and consensus while the Layer-2 project helps with the scalability issue, improving transactional time.
Core components of a Layer-1 blockchain
1. Block production
A blockchain is a chain of blocks that contain transaction data. In a Layer-1 blockchain, blocks are created by miners or validators who perform complex calculations to validate transactions and add them to the blockchain. Each block contains a reference to the previous block, creating an immutable chain of blocks that form the public ledger. This allows every transaction to be recorded and accounted for.
2. Transaction finality
Once a transaction is recorded on the blockchain, it becomes irreversible and cannot be altered or reversed. This is known as transaction finality. It ensures that the transaction is permanently recorded on the blockchain and cannot be tampered with. This is one of the key features of a Layer-1 blockchain, as it ensures the integrity and immutability of the ledger.
3. Native assets
In a Layer-1 blockchain, there are two types of assets: coins and tokens. Coins, like Bitcoin, Ethereum, Cardano, and others, are used to pay for transaction fees and rewards for miners or validators. Tokens, like UNI, DAI, LINK, and SAND, are used to power decentralized networks and apps built on the blockchain. These are essential for the functioning of the blockchain ecosystem.
4. Security
Security is a critical component of a Layer-1 blockchain. It defines the parameters that are responsible for the security of the network, such as the consensus mechanism used (e.g., proof-of-work, proof-of-stake) and the rules governing validator interactions. Layer-1 blockchain ensures the security of the ecosystem, making it difficult for bad actors to manipulate the network.
What is Layer-1 sharding?
Layer-1 sharding is a technique that breaks a blockchain network into smaller groups called shards. Each shard is assigned a specific set of transactions to process at the same time, which means the network can handle many transactions simultaneously.
To better understand how sharding works, imagine you have 10,000 nodes that need to verify 100 blocks. The network randomly assigns the first 100 nodes to verify the first block, the second 100 nodes to verify the second block, and so on. When validators verify a block, they publish a signature to attest to the verification. The remaining nodes only need to validate the 10,000 signatures, which takes less time than verifying the blocks.
Sharding provides better security than a multi-chain ecosystem because it's much harder for attackers to concentrate their power on a single shard. An attacker would need to control at least 30-40% of the stake to attack the system. If a shard gets a bad block, the system can discard it and reorganize itself to avoid the issue.
Limitations of a Layer-1 blockchain
Layer-1 blockchains aim to provide the core features of a blockchain, which are decentralization, security, and scalability. These are all important factors that contribute to the success and adoption of a blockchain. However, striking a balance between these factors can be difficult and is often referred to as the blockchain trilemma.
Decentralization is the idea that a blockchain should be operated by a large and diverse network of nodes, with no single entity controlling the majority of the network's computational power. Security is the concept of protecting the blockchain network from malicious attacks and ensuring the integrity of the data stored on it. Scalability refers to the ability of a blockchain to handle a large volume of transactions while maintaining the same level of decentralization and security.
Early Layer-1 blockchains like Bitcoin and Ethereum prioritized decentralization and security, at the cost of scalability. This meant that as more users began using the network, the transaction speed became slower, and the fees to process transactions increased. As a result, developers started exploring solutions to improve scalability.
One solution is to increase the block size. This means that more transactions can fit into each block, resulting in a faster network. However, this also requires more resources from the nodes securing the network, which can lead to centralization and potential security risks.
Another solution is to change the consensus mechanism. Consensus mechanisms are the rules that determine how transactions are validated and added to the blockchain. Layer-1 blockchains like Bitcoin and Ethereum rely on proof-of-work (PoW) consensus mechanisms, which require a lot of computational power and can be slow.
Other consensus mechanisms, like proof-of-stake (PoS), are faster and require less computational power. However, some argue that this comes at the cost of inferior security and centralization.
Sharding is another solution that involves splitting the data into smaller parts called shards. Each shard can process transactions independently, which can decongest the network and increase transaction speeds. However, the communication between sharded chains can be complex, which can result in inferior security for the blockchain.
The main limitation of Layer-1 blockchains is their ability to balance decentralization, security, and scalability. Developers are continuously exploring new solutions to improve the performance of Layer-1 blockchains while maintaining these core principles.
Layer-1 vs Layer-2
Purpose
Layer-1 blockchains are independent and complete blockchains in themselves, while Layer-2 scaling solutions are designed to help Layer-1 blockchains.
Layer-1 blockchain networks contain all the essential components of a blockchain within themselves, while Layer-2 networks rely on Layer-1 blockchains to function.
Scalability Methods
Layer-1 blockchains achieve scalability by changing the consensus mechanism, forking the chain, and sharding.
On the other hand, Layer-2 scaling solutions exist as state channels, nested blockchains, rollups, and sidechains, and rely on Layer-1 blockchains to function.
##List of the Top Layer-1 cryptos on Coinranking
Bitcoin (BTC)
Bitcoin is probably the most popular Layer-1 project.
Bitcoin has a few Layer-2 projects built upon its network such as the Lightning network and Liquid Network.
Bitcoin operates on a Proof-of-Work mechanism and has a TPS (transaction per second) time of 7 TPS which is rather slow as compared to VISA that stands at 24,000TPS.
By comparison, the Bitcoin Lightning Network is able to process up to 1,000,000 TPS. This shows the potential of having a Layer-2 protocol on the base layer of Bitcoin.
Ethereum (ETH)
If Bitcoin is the winner, Ethereum would be the runner up.
Ethereum is considered to be the first smart contract platform. This is mainly because of EVM (Ethereum Virtual Machine) which is a decentralized computer that developers interact with to create smart contracts. Most projects launched are now EVM compatible which include Avalanche (AVL) and Binance Smart Chain (BNB).
Due to its compatibility, decentralization and strong ecosystem, Ethereum is a popular choice for developers to create new projects on the blockchain.
Some Layer-2 protocols on the Ethereum blockchain include Polygon(MATIC), OMG Network (OMG), and Skale (SKL).
Solana (SOL)
Solana is like a faster version of Ethereum.
It uses a unique consensus mechanism known as Proof-of-History which uses timestamps on the blockchain. This makes Solana one of the most high-performing and efficient blockchains to date. It's great as a smart contracts platform.
Solana benefited from the scaling issue Ethereum and Bitcoin had by improvising from the early joiners.
Polkadot (DOT)
Polkadot is an open-sourced blockchain. It allows different blockchains to be interconnected using parachains. It also uses a shared security system. This allows the network to leave out the use of validators and miners for security.
Avalanche (AVAX)
Avalanche is also compatible with EVM. It uses a C-chain as a proprietary network chain. This makes Avalanche versatile for developers who keep the C-chain in mind when creating smart contracts.
Celo (CELO)
Celo is on a mission to help the public adopt the use of cryptocurrencies. They are doing this by making Bitcoin transactions available to smartphone users globally. Phone numbers are used as public keys.
Cardano (ADA)
Cardano differentiates itself by using a mathematical consensus mechanism and a unique multilayer architecture. It was designed by experts in the field of cryptography and engineering. Besides being used as a transfer of value, ADA is also used to power the smart contract platform on the Cardano blockchain.
What are some low-cap layer-1 blockchains?
On our list of Layer-1 coins on our site, you can filter the list according to market cap by clicking on the word "market cap". This way, you can see the list in the order or lowest market cap or highest market cap depending on what you prefer.
How many Layer-1 blockchains are there?
This is a hard question to answer because new Layer-1 blockchains could be made and brought into the crypto market everyday. There is no one number because new blockchains are created all the time as technology evolves. For now, on our Layer-1 page, we have 115 layer-1 cryptos as of January 2024. This number will continue to grow.
Final thoughts on Layer-1 coins
While Layer-1 coins are quite reputable in terms of their security and decentralization, they do lack scalability. Newer Layer-1 coins have introduced scalable blockchains like Cardano or Solana; however, none of them have been stress-tested like Ethereum.
The best solution for now is to implement Layer-2 blockchains that can offload some of the transactions for efficiency.
If you’re looking to buy some Layer-1 coins, make sure you evaluate its use cases and how it works. Check out the list Coinranking has on Layer-1 coins to know more about these coins!