Let’s face it, Blockchain technology is growing by leaps and bounds in the present scenario and so is the number of crypto users. Though many crypto giants consider Blockchain as the new pillar of the digital economy, a few public Blockchain networks often struggle to achieve high throughput despite being highly secure and decentralized.
The underlying structure of many Blockchain platforms is currently facing a challenge called Blockchain trilemma: an act of balancing scalability, decentralization, and security within the Blockchain infrastructure. Simply put, it’s very challenging for a decentralized network to concurrently achieve equally high levels of scalability, security, and decentralization.
For instance, Bitcoin processes only 4-7 transactions per second whereas VisaNet, the card network’s payment processing system, processes approx. 24000 transactions per second. To exceed high levels of throughput rate offered by legacy systems, it’s crucial for Blockchain networks to be more scalable and secure.
Considering the scalability issues, many Blockchain enthusiasts have started investing in Layer 1 app development. This blog unveils the business benefits and the top 5 Layer 1 solutions in the market. But before moving further, let’s understand the difference between Layer 1 and Layer 2 Blockchain solutions.
Layer 1 Solutions vs Layer 2 Solutions: The Difference
A Layer 1 solution refers to an underlying Blockchain protocol on which blocks are developed. It is the basic form of Blockchain that provides the foundation for the network layers. Bitcoin, Litecoin, and Ethereum are examples of Layer 1 Blockchain solutions.
A Layer 2 solution refers to a third-party integration that operates on top of an underlying Blockchain protocol to improve the transactional throughput. Lightning network is a Layer 2 solution designed on the Bitcoin network to enhance its transaction speed.
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Why Businesses Must Invest in Layer 1 App Development?
Crypto users prefer to use Blockchain solutions that provide high speed and security. Since scalability is the major advantage of Layer 1 solutions, businesses must make hefty investments in Layer 1 app development considering the rising user demand.
Investing in Layer 1 solutions will help businesses create brand awareness and capture billions of potential crypto users across the globe. Having a wider market reach will help cryptopreneurs build a solid brand presence and earn greater profit in the long run.
Top 5 Layer 1 Blockchain Solutions
One of the most trending and popular Layer 1 solutions in the current scenario is Bitcoin. It is considered the best cryptocurrency for making profitable investments due to its high liquidity and market cap. Though every cryptocurrency experiences volatility being a volatile asset, Bitcoin is the most safest and stable option for investors.
Ethereum is among the Layer-1 Blockchain solutions with the largest market capitalization. The primary reason that makes Ethereum the best investment is EVM(Ethereum Virtual Machine). Many Blockchain platforms such as TRON, Binance Smart Chain, and Avalanche are EVM compatible. Ethereum’s compatibility makes it a widely used currency in the list of Layer 1 solutions.
Launched in 2017, Algorand is based on the Proof of Stake consensus algorithm and is considered to be more secure as compared to other Layer-1 platforms in the crypto market. From low gas fees to complete decentralization, there are a plethora of benefits of investing in Algorand.
Binance Smart Chain(BNB)
Binance Smart Chain is an EVM-compatible platform that offers very low gas fees of around $0.15 per transaction. BSC is highly scalable and its native token facilitates quick transactions on a secure network. In addition to secure and affordable transactions, BSC has a quick adoption rate.
Cosmos is an application-agnostic platform that aspires to be at the forefront of DeFi. Since Cosmos is EVM-compatible, programmers can easily launch Ethereum applications without re-writing the code. It is a very popular Layer-1 platform among Blockchain developers and DeFi investors.
As this blog post is written to make everyone aware of the business benefits and top 5 Layer 1 solutions in the market, businesses should have a rough idea of which Layer-1 solution deserves their investment. Besides, it is also recommended to seek consultation from a Layer 1 Blockchain company like Antier for making better and profitable business decisions.
Antier is a pioneer in Layer 1 app development with over a decade long experience in the crypto industry. Whether you’re willing to develop a Layer-1 solution from scratch or fork an existing Blockchain, our Blockchain developers work dedicatedly to turn your vision into reality. We provide a host of Layer 1 app development services to empower you to build your Layer 1 solution in line with your vision. We hold a proven track record of delivering countless Blockchain-based solutions to businesses in the crypto industry.
Get in touch with our experts today to get your Layer 1 Blockchain solution developed as per your business requirements.