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Glossary

What is Layer 1?

The short answer

A blockchain's base network — Bitcoin, Ethereum, and Solana are all layer 1 networks.

Layer 1 refers to the foundational blockchain itself, as opposed to layer 2 networks built on top of it to add speed or reduce cost.

Related terms

Full glossary

Proof of Work

A consensus method (used by Bitcoin) where network security comes from competing computing power.

Peg

The target value a stablecoin is designed to maintain, typically $1 for dollar-pegged coins.

51% Attack

A theoretical attack where one entity gains control of the majority of a network's computing or staking power,…

Volatility

How much and how quickly a price moves, in either direction.

Hash Rate

A measure of the total computing power securing a proof-of-work network like Bitcoin.

Smart Contract

Self-executing code on a blockchain that automatically carries out an agreement without a company in the middle.

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