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Onchain Economics

Layer 1(L1)

The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.

In-Depth Explanation

L1s are the foundation layer that validates transactions and maintains the canonical ledger. They provide the security guarantees that L2s inherit. Different L1s make different tradeoffs between decentralization, security, and scalability. L1 revenue comes from transaction fees and (for PoS chains) inflation paid to validators.

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