10 Best Layer 1 Solutions You Need to Know in 2024

In the rapidly evolving world of blockchain and decentralized systems, the term ‘Layer 1’ has emerged as a buzzword. But what does it really mean? Layer 1 refers to the base layer of a blockchain protocol, the foundation upon which all subsequent layers are built. It’s a vital aspect of blockchain technology and plays a key role in the system’s scalability and performance.

With various Layer 1 solutions out there, it might be hard to pick the right one for your needs. That’s why we’ve created this guide. Whether you’re a seasoned tech guru or new to the blockchain space, we’ve got you covered with the 10 best Layer 1 solutions you need to know now!

What Are Layer 1 Solutions?

Layer 1 solutions are the underlying architecture of a blockchain network. They deal with consensus algorithms, transaction validation, and form the core structure that ensures security and robustness. In short, Layer 1 solutions are the fundamental building blocks of any decentralized network.

Understanding Layer 1 is essential because it directly impacts the speed, scalability, and reliability of a blockchain system. It’s like the foundation of a house – the stronger it is, the more stable the entire structure will be.

Also Read : Ethereum’s Competitors : Are They Set to Dethrone the Crypto Giant?

With the growing interest in blockchain technology, various Layer 1 solutions have been developed. These are designed to address specific challenges, such as slow transaction speeds or limited scalability. Let’s delve into the 10 best Layer 1 solutions available today.

The 10 Best Layer 1 Solutions in 2024

Layer 1 solutions form the bedrock of the blockchain ecosystem, providing the underlying infrastructure for decentralized applications and digital assets. These foundational protocols are designed to tackle critical challenges such as scalability, security, and interoperability.

We will explore the ten best Layer 1 solutions that are spearheading the advancement of blockchain technology, revolutionizing various industries and paving the way for a decentralized future.

1. Hela Labs:

Hela Labs has developed Hela, a next-generation layer 1 blockchain protocol with the mission of bringing Web3 to the real world. Blockchain technology has rapidly evolved, and despite its advancements, mass adoption still seems distant. Hela aims to bridge this gap by introducing innovative features that address the challenges of scalability, interoperability, privacy, and user experience.

Key Features:

• Modular Design
• Stablecoin as Gas Fee
• Decentralized Identity (DID)
• EVM Compatibility

Consensus Mechanism:

• Uses the Tendermint protocol based on Byzantine-Fault-Tolerant (BFT) and Proof-of-Stake (PoS).

Notable for:

• Asset Integration Layer
• Partnership with A*STAR: Collaborates with A*STAR’s Institute of High Performance Computing to co-develop Hela Chain.

2. Ethereum

Ethereum powers thousands of decentralized applications (dApps) and is known for its robust smart contract functionality, allowing for self-executing contracts with terms written into code, backed by strong community support.

Key Features:

• Decentralized Applications (dApps): Ethereum’s platform is famous for supporting the creation and execution of decentralized applications, enabling developers to build on a blockchain without creating a new one.
• Smart Contracts: Allows the creation of self-executing contracts where the terms are written into code.
• Community and Development: Strong community support and continuous improvement through Ethereum Improvement Proposals (EIPs).

3. Solana

Solana is a highly scalable Layer 1 blockchain built for mass adoption, utilizing a unique Proof of History (PoH) consensus mechanism to enable high-speed transactions and low fees.

Key Features:

• Scalability: Solana uses a unique Proof of History (PoH) consensus mechanism that offers high scalability.
• Low Transaction Fees: Designed for mass adoption, providing low-cost transactions.
• Rapid Development: Features like Solana’s Sealevel parallel smart contracts engine enhance development efficiency.

4. Astar

Astar offers scalable decentralized blockchain solutions for next-generation Web3 innovations, focusing on cross-chain compatibility through integration with Polkadot, and adaptable scalability to meet growing demands.

Key Features: 

• Web3 Innovations: Astar is focused on facilitating Web3 development, allowing decentralized web applications.
• Integration with Polkadot: Being a part of the Polkadot ecosystem, it enables cross-chain compatibility.
• Scalability: With scalable solutions, it accommodates a growing number of users and applications.

6. Cronos

Cronos is a leading EVM-compatible Layer 1 blockchain network built on the Cosmos SDK, allowing existing Ethereum dApps to migrate seamlessly and leveraging the Cosmos ecosystem for enhanced interoperability.

Key Features: 

• EVM Compatibility: Cronos is compatible with Ethereum Virtual Machine, allowing existing Ethereum dApps to migrate easily.
• Built on Cosmos SDK: Leverages the Cosmos ecosystem for enhanced interoperability and scalability.
• Community Focus: Regularly engages with the community for insights and development.

7. Cosmos

Cosmos stands as the first Layer 0 blockchain, enabling interoperability between different systems through its Inter-blockchain Communication (IBC) protocol, modular design, and strong collaborative ecosystem.

Key Features: 

• Inter-blockchain Communication (IBC): Cosmos focuses on making different blockchains work together through its IBC protocol.
• Modular Design: The Cosmos SDK allows developers to create custom blockchains with ease.
• Strong Ecosystem: Cosmos supports a wide range of projects and tokens, fostering collaboration.

8. Avalanche

Avalanche is a future-proof and developer-friendly Layer 1 blockchain protocol that uses subnets to allow customizable blockchain rules, offers high transaction throughput, and employs an energy-efficient consensus mechanism.

Key Features: 

• Subnets: Avalanche uses subnets to allow anyone to create their own blockchain with custom rules.
• High Throughput: Supports a high transaction rate, making it suitable for enterprise-level applications.
• Eco-Friendly: Uses a consensus mechanism that is energy-efficient compared to traditional Proof of Work.

9. BNB Chain

BNB Chain is one of the largest blockchains in terms of transaction volume and daily active users, offering EVM compatibility, strong community support, and a particular focus on decentralized finance (DeFi) applications.

Key Features: 

• Mass Adoption: BNB Chain, formerly known as Binance Smart Chain, hosts a large number of active users and applications.
• Compatibility: It’s EVM-compatible, allowing for a smooth transition for Ethereum developers.
• Community Support: Strong community backing with a focus on DeFi applications.

10. Shardeum

Shardeum is an EVM-based L1 blockchain that uses dynamic state sharding to achieve linear scalability, offering Ethereum compatibility and the flexibility to adapt to different demands and conditions.

Key Features: 

• Dynamic State Sharding: Innovative sharding technique that enhances scalability.
• EVM-based: Ethereum-compatible, facilitating easier migration for developers.
• Flexibility: Adjustable parameters allow it to adapt to different demands and conditions.

Why Choose the Right Layer 1 Solution?

Selecting the right Layer 1 solution is more than just picking a popular name. It requires a deep understanding of your project’s needs, such as speed, security, or flexibility.

Each Layer 1 solution has its unique features and trade-offs. For instance, if you prioritize security, Bitcoin’s Layer 1 might be the ideal choice. If scalability is key, then solutions like Solana could fit the bill.

The point is, choosing the right Layer 1 can make or break your project. It’s a critical decision that requires careful consideration and research.

How to Evaluate Layer 1 Solutions

Evaluating Layer 1 solutions is a critical step in the decision-making process for anyone looking to build or invest in decentralized technologies. Below, we delve into the detailed process that can guide you in making an informed choice.

1.  Understand Your Needs:

• Scalability: How many transactions per second (TPS) do you need? Will the network grow over time? Scalability should align with your project’s growth potential.
• Security: How vital is the security for your project? Understanding the consensus mechanisms and threat models can help in assessing this aspect.
• Decentralization: Do you require a fully decentralized network, or can there be some level of centralization? Your choice here may affect other factors such as speed and cost.

2. Research the Technology:

• Consensus Mechanism: Different Layer 1 solutions use various consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS). Understanding these can help you gauge the network’s security and performance.
• Community Support: A thriving community can indicate ongoing development and support. Evaluate forums, GitHub repositories, and other social channels.
• Interoperability: If your project needs to communicate with other blockchains, you’ll want a Layer 1 that supports cross-chain compatibility.
• Regulatory Compliance: Consider how the Layer 1 solution complies with legal regulations in the jurisdictions where you operate.

Also Read: Top 10 List of Layer 1 in Blockchains

3. Consider Costs:

• Transaction Costs: Some networks may offer high throughput but at a higher cost per transaction. Assess whether these costs align with your budget.
• Development Costs: Consider the availability of tools, documentation, and community support, as these can significantly impact development expenses.
• Maintenance Costs: Look into the long-term costs of running nodes or participating in the network, including hardware, energy consumption, and ongoing support.

4. Test and Experiment:

• Use Testnets: Most Layer 1 solutions provide testnets that simulate the mainnet environment. Test your application here to gain insights into performance and usability.
• Evaluate Tools and Documentation: Well-maintained documentation and development tools can save time and resources in the development phase.
• Seek Community Feedback: Engage with the community to gather feedback, insights, or potential pitfalls with the particular Layer 1 solution.

5. Consider Environmental Impact:

• Energy Consumption: Evaluate the energy efficiency, especially if your organization or project has sustainability goals. PoS generally consumes less energy than PoW.

6. Analyze Long-term Viability:

• Development Roadmap: Review the future development plans to ensure that the Layer 1 solution will continue to align with your project’s direction.
• Historical Performance: Analyzing past performance, network uptime, and community engagement can give insights into long-term reliability.

Conclusion

The world of Layer 1 solutions is rich and diverse, offering myriad opportunities for innovators, developers, and businesses. Understanding the essence of Layer 1 and exploring the 10 best solutions highlighted in this guide could be the first step towards your next successful project.

Choosing the right Layer 1 is essential. It’s not just a technical decision; it’s a strategic one. So take your time, do your research, and make an informed choice. The perfect Layer 1 solution for your dream project is out there, waiting for you!