Layer 1 Blockchain – What is it and why is it blooming?

What is a Layer 1 blockchain?

Layer 1 blockchain is defined as a set of solutions implemented in the blockchain’s basic protocol to improve the functionality and scalability of the blockchain. There are two most common Layer 1 solutions, which are consensus protocol changes and sharding.

Even projects like Ethereum are migrating from the old PoW consensus protocol to the energy-efficient PoS protocol.

The most common layer 1 scalability method is sharding. What does sharding do? It just divides the transaction into smaller datasets called “shards”. This can be done in parallel by the blockchain network instead of running the network sequentially in each transaction.

One of the benefits of a Layer 1 solution is that you don’t have to add anything on top of your existing infrastructure.

Use case

IBM and Global Food Management Platform

At the end of 2018, IBM will launch the Food Trust platform to help businesses counterfeit near-expiration dates and sell them on time. Product manufacturers, suppliers, and distributors connect to the platform to monitor origin and delivery dates and verify product certification. Companies such as Nestlé, Unilever, Wal-Mart and Carrefour’s supermarket chains are already participating in the platform. It costs thousands of dollars, but you can save hundreds of thousands of dollars.

Sberbank and supply credits

Factoring is a type of credit service that banks often offer to wholesalers. For example, a supplier first ships a product to a large retail chain, but receives the price a few months later. To prevent the supplier from sitting without money during this period, the bank will immediately pay him and in the future will receive money from the trading network with interest.

Sberbank Factoring and M.Video have created a common platform for data exchange. She reduced the time to match shipping and receipt documents to minutes. As a result, banks save paperwork and suppliers can receive money faster. By the end of 2017, the platform was used by every five Mà.Video companies and was open to other banks and factoring companies.

Sweden: Land transactions without unnecessary visits to notaries

Since 2016, local carriers, IT companies, banks and cadastral offices have tested the execution of land rights transactions over distributed networks on the blockchain. Once the documents have been uploaded, the parties can continue to exchange verified electronic copies without contacting a notary public and without wasting time sending a copy of the paper. If the transaction is financial, the bank records the fact of payment and inputs it into the system. This saves time and money at all stages of the transaction. In the future, the country plans to move all real estate transactions to the blockchain, which is predicted to save up to € 100 million annually.

Layer 1 blockchain success, its ecosystem, consensus mechanism


For decades, these mechanisms have been used to establish consensus between database nodes, application servers, and other enterprise infrastructures. In recent years, new consensus protocols have been invented, allowing crypto-economic systems such as Ethereum to agree on the state of the network.

The consensus mechanism of the crypto-economic system also helps prevent certain types of economic attacks. In theory, an attacker could break consensus by controlling 51% of the network. The consensus mechanism is designed to make this “51% attack” infeasible. Various mechanisms have been designed to solve this security problem in different ways. [ref.]

Ethereum, like Bitcoin, currently uses the Proof of Work (PoW) consensus protocol, but will soon move to PoS.

Unlike Ethereum, Solana has few new features such as:

  • Proof of history (POH)
  • Tower BFT
  • Turbine
  • Gulf Stream
  • Sea level
  • Pipeline processing
  • Cloud break
  • Archiver

Proof of work systems such as Bitcoin and Ethereum support approximately 10 transactions (TPS) per second. Practical Byzantine Fault Tolerance Base (PBFT) Proof of Stake (PoS) systems such as Tendermint support approximately 1,000 TPS on 100-200 nodes. Solana, a PoS blockchain like PBFT, is the highest performing blockchain and the world’s first web-scale distributed network, supporting over 50,000 TPS on over 200 nodes in today’s testnet iterations. ..

Since its inception, the Solana team of pioneering engineers from Qualcomm, Intel, Netscape and Google has focused on building the technology that Solana needs to work with these groundbreaking performance standards.

Another super crazy innovation is done by POLKADOT

A final agreement means that at some point in the future, all nodes will agree on the authenticity of one dataset. This final consensus building can take a long time and it is not possible to determine in advance how long it will take. However, finality gadgets such as GRANDPA (GHOST-based Recursive ANcestor Deriving Prefix Agreement) and Ethereum’s Casper FFG (Friendly Finality Gadget) are designed to guarantee block finality more powerfully and quickly. Several processes under the Byzantine Agreement have taken place. The concept of irreversible consensus is known as provable finality.

Therefore, there are two protocols to use when talking about the Polkadot, GRANDPA, and BABE (blockchain extension blind allocation) consensus protocols. Polkadot uses what’s called a hybrid consensus, so we’ll talk about both of these.Hybrid consensus splits finality gadgets from block generation mechanism

Promising new and innovative Layer1 platform: Introducing Aurora Network

Aurora aims to be a pioneering platform for building infrastructure for social networks, financial applications and games, yet it still provides “the value of the blockchain community”. Aurora Network applies innovative technology to improve and enhance blockchain performance in terms of transaction speed, security, transparency, and scalability, which are the hallmarks of today’s Ethereum.

Aurora Governance

Governance, like all other types of systems, is important for the development and adoption of any platform, as Aurora faces natural evolution and updates.

Aurora offers the following on-chain governance:

  • Important network parameters that allow participants to vote for network changes
  • Democratically resolve network upgrade decisions

This allows the platform to effectively perform dynamic parameter optimization through Cloud Oracle. However, unlike some other governance platforms, Aurora does not allow unlimited changes to any aspect of the system. Instead, governance can change only a predetermined number of parameters, making the system more predictable and more secure.

Aurora architecture

Aurora is designed to be a publicly licensed chain pegged to many other networks. From an architectural point of view, the Aurora blockchain can be divided into three conceptual layers.

  • Application: Responsible for updating a given state of a series of transactions, that is, the processing of a transaction.
  • Networking: Responsible for propagating transactional and consensus-related messages.
  • Consensus: Allows nodes to agree on the current state of the system.

The state machine is the same as the application layer. Defines the application state and state transition function. The other layers are responsible for replicating the state machine on every node that connects to the network.

Industry use cases

Decentralized Finance (DeFi)

Leveraging Aurora’s strong network, developers build a variety of cross-chain compatible financial applications, including asset issuance, borrowing and lending, DEX, derivatives, AMM, P2P payments, insurance, Oracle and more. I can do it.

Social network

Centralized social networks are based on servers that store all the information you provide. This is how social media companies make money from advertising and statistics. The most famous examples of centralized social networks are Facebook, Instagram, Youtube and Twitter.

Aurora’s architecture opens up a new era of social networking where decentralization and complete privacy are guaranteed. The platform’s blockchain mechanism gives real-world users incentives to connect with others to chat, share hobbies and ideas, and make new friends.

Institutions, businesses, and governments

Aurora is the best verifiable platform for institutions, businesses and governments. With built-in compliance, data security, and other rulesets, you have full control over your implementation, launching assets, building applications, and creating subnets.

  • Asset issuance and trading
  • Bond finance
  • Digital identity
  • Document tracking
  • Money management
  • insurance
  • intellectual property
  • lending
  • real estate
  • Supply chain
  • Trade finance

Non-fungible token (NFT)

You can create your own NFT in seconds for less than a penny. Prove ownership digitally and streamline the flow of value. Create and share art, collections and more, enjoy all the benefits and eliminate any downsides.

  • Art
  • Authentication and licensing
  • Collectibles
  • Credentials
  • In-game items
  • musics


Distributed social networks offer another answer to data privacy and security. Federation social networks allow users to create accounts without linking to real-world identities such as email addresses and phone numbers. In addition, these networks often rely on public key encryption for account security rather than relying on a single organization to protect user data.

By migrating to a distributed version like AuroraDelivering infrastructure to a permissionless, secure and scalable platform that supports a wide range of applications such as social networks, business buildings, or simply dApps can regain much of the power lost when using centralized infrastructure. I can do it. Layer 1 Blockchain – What is it and why is it blooming?

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