The term “Base Layer” refers to the foundational blockchain protocol that supports a cryptocurrency’s network. This layer handles essential functions, such as transaction processing, consensus mechanisms, and security features.

It operates as the primary structure upon which other functionalities can be built. In many cases, the Base Layer is responsible for the core monetary element, ensuring the transfer of value and maintaining the integrity of transactions. Examples include Bitcoin and Ethereum, where the Base Layer handles all transactions and smart contracts, respectively.

Additional layers, known as Layer 2 solutions, can be built on top of this foundation to enhance scalability, speed, and efficiency. These solutions aim to improve user experience by addressing issues like high transaction fees and slow processing times. Overall, the Base Layer is crucial for establishing the trustworthiness and utility of a blockchain, enabling other projects and applications to thrive.