Layer 1 (L1)
The base blockchain network that processes and finalizes transactions on its own. Examples: Ethereum, Solana, Avalanche.
Layer 1 refers to the main blockchain itself. Ethereum is the most well-known L1 for USDC. It provides the highest level of security and decentralization, but transactions can be expensive because block space is limited and in high demand.
Other L1 blockchains like Solana and Avalanche take different architectural approaches to achieve faster, cheaper transactions, but with different security trade-offs.
Layer 2 networks were built on top of L1s to solve the cost problem while still inheriting the security of the underlying chain.
Related Terms
Layer 2 (L2)
A secondary network built on top of a Layer 1 blockchain to increase speed and reduce transaction costs. Examples: Base, Arbitrum, Optimism.
Blockchain
A distributed, immutable digital ledger that records transactions across a network of computers.
Gas Fees
Transaction fees paid to blockchain validators for processing and confirming transactions.
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.