The term “1st layer” refers to the base layer of a blockchain network. This layer is responsible for handling all fundamental operations, such as transaction validation, consensus mechanisms, and data storage. Essentially, it is the core foundation of the blockchain where all transactions are processed and recorded.Bitcoin and Ethereum are examples of 1st layer blockchains. They provide the foundational protocols that facilitate secure and decentralized transactions. Users interact directly with these blockchains, and their operations are governed by the rules embedded within their code.Challenges often arise, such as scalability issues, which limit the number of transactions that can be processed at a time. These limitations lead to increased transaction fees and slower processing times during high-demand periods. To address these challenges, other solutions, often referred to as “2nd layer” solutions, are developed to operate on top of the 1st layer, enhancing scalability and efficiency without altering the underlying protocol.