What makes an L1 different from just an app?

Its own nodes, rules, security and gas coin. An L1 secures itself and records transfers on its own. Apps run on top of it.

Why does Ethereum gas spike at peak hours while Solana’s usually doesn’t?

Different trilemma choices: Ethereum keeps nodes light, Solana chases speed. Ethereum saves block space so almost anyone can run a node, and moves scale to L2s. That is the next lesson.

You need addresses on Ethereum, Base and Arbitrum. How many different addresses do you need?

One: the 0x address is shared by EVM networks. All three are EVM networks, so the address is the same. But each network has its own balance and needs its own gas.

L1: the base blockchains

Lesson 12 of 58 in the course “Crypto”. Free, with animations and a quiz.

What an L1 is

An L1 (Layer 1) is a standalone blockchain: it has its own nodes, its own rules, its own security and its own coin for gas. Bitcoin, Ethereum, Solana, Tron, BNB Chain and TON are all L1s. Each has its own niche. Bitcoin is digital gold. Ethereum is a platform for apps and the foundation for L2s. Solana is about speed and memecoins. Tron is the go-to rail for moving USDT. When you pick a network, you pick where your money lives and what you pay gas with.

The trilemma: you can’t have it all

Vitalik Buterin, co-founder of Ethereum, described the trilemma: it is hard for a network to be secure, decentralized and fast at the same time. Bitcoin and Ethereum chose security and decentralization: you can run a node on an ordinary computer, but blocks fit only so many transfers, and gas gets pricey at peak hours. Solana chose speed: blocks are fast and cheap, but nodes need powerful hardware, and in February 2024 the network was down for about 5 hours. Neither is simply good or bad; they are different trade-offs.

Which wallet for which network

Most networks where DeFi lives are compatible with Ethereum; this is called EVM (Ethereum Virtual Machine). They share the 0x address format, so one wallet such as MetaMask or Rabby works on all of them. Bitcoin, Solana, Tron and TON are built differently and have their own addresses. The easy route is a multichain wallet: one seed phrase with addresses for different networks inside. Hardware wallets can handle several networks too.

Check yourself

What makes an L1 different from just an app?
Correct answer: Its own nodes, rules, security and gas coin. An L1 secures itself and records transfers on its own. Apps run on top of it.
Why does Ethereum gas spike at peak hours while Solana’s usually doesn’t?
Correct answer: Different trilemma choices: Ethereum keeps nodes light, Solana chases speed. Ethereum saves block space so almost anyone can run a node, and moves scale to L2s. That is the next lesson.
You need addresses on Ethereum, Base and Arbitrum. How many different addresses do you need?
Correct answer: One: the 0x address is shared by EVM networks. All three are EVM networks, so the address is the same. But each network has its own balance and needs its own gas.

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