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I just realized that quite a few people still don't fully understand what a layer 1 blockchain is, so today I want to share some insights about this.
So, what is a layer 1 blockchain? It is the main foundational blockchain that functions as the backbone of the entire ecosystem. They have the ability to process and finalize transactions on their own network without relying on any other network. Each layer 1 blockchain has its own native token used to pay transaction fees. Additionally, they serve as infrastructure for other applications, protocols, and networks built on top of them, including Layer 2 solutions and dApps.
But what is a layer 1 blockchain that causes issues? In fact, early blockchains had quite a few weaknesses. For example, Bitcoin processes about 1,700 transactions per block and takes 10 minutes to mine a block, resulting in a TPS of only around 2.83, with a maximum of about 4.17 TPS. Ethereum is slightly better, with blocks created every 13 seconds, but with a gas limit of 30 million per block, the theoretical maximum is 1,428 TPS. In practice, it hovers around 11.8 TPS because smart contract transactions consume more gas.
This is why new layer 1 blockchains have emerged. These new projects are built on the foundations of early blockchains but address their shortcomings and add new features. For example, Solana achieves 110,000 TPS, and Aptos reaches up to 160,000 TPS — these numbers are theoretical but still demonstrate significant progress.
I see investing in layer 1 blockchains offers safety along with considerable profit growth. Currently, I am focusing on some layer 1 blockchains in this cycle.
APT is at $0.82, down 5.78% this week, with a circulating market cap of $985.15M. SUI is priced at $0.91, also down 5.16%, with a market cap of $3.60B. SEI is at $0.05, down 3.93%, with a market cap of $375.83M. I will have a more detailed analysis of these projects soon.
Wishing everyone to hold their coins tight and hit big gains. If you're interested in what layer 1 blockchains are and the opportunities in this space, follow me for more updates.