Since the advent of the first cryptocurrency in 2009, many cryptos have been introduced, and many investors and users are trading in these currencies. The main goal of cryptocurrency is to provide users with secure and decentralized payment and transaction options. Many cryptocurrency exchange platforms are providing a secure way of the transaction to the customers, such as KuCoin, that have recently introduced its KuCard for secure transaction by cryptos all around the world.
Crypto technology is based on blockchain that is responsible for secure transactions without involving any centralized organization, but for the constantly evolving and expanding industry of cryptos, scalability is an important factor that is the key factor to keep the cryptos in operation. In this article, we are going to see the importance of scalability and the role of layer 1 blockchain in that. So let’s begin.
What Is Layer 1 BlockChain?
With the expansion of the crypto industry, the need for scalability is more than ever. The expansion of cryptos depends heavily on scalability because it would be very difficult to monitor and secure each transaction with a separate blockchain. This is where the layer 1 blockchain is utilized and is considered the revolution in crypto technology.
With the layer 1 blockchain, the scaled blockchain can handle more transactions and user activity without risking security or decentralization. In simple words, blockchains require proof of work which is a resource-intensive task, and for the constantly increasing crypto industry, there are not enough blockchains. With the layer 1 blockchain, the scaled transactions mean that there is little burden on the blockchain, and it can handle more transactions.
Types Of Layer 1 BlockChain
There are different techniques to achieve scalability in the blockchain, and it is regarded as blockchain solutions. These are two main types of layer 1 blockchain solutions.
The regular blockchain works by a proof of work method that is a slow mechanism that requires high resources and is not very good in terms of scalability. Layer 1 blockchain replaces that mechanism with a proof of stake mechanism by compromising some amount of security to achieve the desired scalability.
Sharding is also a layer 1 blockchain solution that is much more reliable as compared to consensus protocol. It utilizes the distributed ledger technology in blockchain to increase scalability. This network division into several nodes effectively reduces the workload on the blockchain and increases scalability.
What Are The Benefits Of Layer 1 Blockchain?
Crypto technology is mainly based on blockchain, and it is the essence of decentralization. But the modern market is getting too large for blockchain to handle, and there are several risks with that. Without the layer 1 blockchain, you might have to wait for your turn for transactions and have to compromise security.
Layer 1 blockchain not only eliminates these risks but also opens new trading horizons without wasting too many resources. KuCoin is the best platform for crypto trading and utilizes layer 1 solutions for smooth transactions. You can convert USDT price, ADA/BTC or any other coin in minimum time, and it provides access to the latest crypto price such as BTC, ETH/USDT prices, etc.