Layer 1 Alternatives
Other base-layer blockchains competing for adoption
Beyond Bitcoin and Ethereum
"Layer 1" refers to base-layer blockchains—the foundational networks that process and validate transactions. While Bitcoin and Ethereum dominate, many alternatives offer different tradeoffs.
These "alt-L1s" often promise faster transactions, lower fees, or different technical approaches. Understanding their tradeoffs helps you navigate the multi-chain landscape.
Think of it like different operating systems
The Blockchain Trilemma
Decentralization: How many independent validators secure the network? More is harder to corrupt but slower.
Security: How resistant is the network to attacks? Stronger security often means slower confirmation times.
Scalability: How many transactions per second? Higher throughput often requires fewer validators or more trust.
Major Categories
EVM-compatible chains: Solana alternatives that work with Ethereum tools. BNB Chain, Avalanche, Polygon (also L2). Easy for Ethereum developers to deploy to.
High-performance chains: Built from scratch for speed. Solana processes thousands of transactions per second using novel consensus mechanisms.
Modular blockchains: Separate execution, consensus, and data availability layers. Cosmos enables custom "app chains" that can interoperate.
Privacy-focused: Chains like Monero or Zcash prioritize transaction privacy over transparency.
Evaluating Alt-L1s
Developer ecosystem: Are developers building on it? Check GitHub activity, grants programs, and application diversity.
Decentralization metrics: How many validators? Who runs them? What's the hardware requirement?
Track record: Has the chain experienced outages? How did the team respond? Newer chains are less battle-tested.
Tokenomics: What's the inflation rate? Who holds the tokens? Is there meaningful decentralization of ownership?
Why Alt-L1s Matter
- Competition drives innovation across the ecosystem
- Different use cases may benefit from different tradeoffs
- Lower fees enable applications not viable on Ethereum mainnet
- Experimentation with new consensus mechanisms and architectures
Alt-L1 Risks
- •Less battle-tested security than Bitcoin or Ethereum
- •Smaller ecosystems with less liquidity and fewer applications
- •Some rely on small validator sets—less decentralized
- •Network outages more common on newer chains
- •Token valuations can be disconnected from actual usage
Key Takeaways
- Layer 1s are base-layer blockchains that validate transactions
- The trilemma: decentralization, security, scalability—pick two
- Alt-L1s offer different tradeoffs than Ethereum
- Evaluate based on decentralization, developer activity, and track record
- Newer chains are less proven but may offer innovation