Layer 1 coins, also known as Layer 1 cryptocurrencies or Layer 1 tokens, refer to the native cryptocurrencies of blockchain networks that serve as the foundational layer of a blockchain ecosystem. These networks form the base protocol layer, on top of which other applications, protocols, and blockchain networks (Layer 2 solutions) can be built. Examples of Layer 1 blockchains include Bitcoin, Ethereum, and Solana.
Here are some key characteristics and examples of Layer 1 coins:
1. **Bitcoin (BTC)**: The first and most well-known cryptocurrency, serving as the native coin of the Bitcoin blockchain.
2. **Ethereum (ETH)**: The native cryptocurrency of the Ethereum blockchain, which supports smart contracts and decentralized applications (dApps).
3. **Solana (SOL)**: The native token of the Solana blockchain, known for its high throughput and low transaction costs.
4. **Cardano (ADA)**: The native coin of the Cardano blockchain, focusing on security, scalability, and sustainability.
5. **Polkadot (DOT)**: The native cryptocurrency of the Polkadot network, designed to enable different blockchains to interoperate.
Layer 1 coins are essential for the operation of their respective blockchains, often used to pay transaction fees, secure the network through staking or mining, and serve as a medium of exchange within the ecosystem.