“Blockchain technology is not only a more efficient way to settle securities; it will fundamentally change market structures, and perhaps even the architecture of the Internet itself.” These are the words of Abigail Johnson, CEO of Fidelity Investments, in 2017. We are witnessing this development today. One look at the current financial industry and we are grateful that blockchain has brought us an alternative means of performing financial transactions. While you’ll agree that it’s been a comfortable ride so far, the technology isn’t without its challenges. These challenges include scalability, user accessibility barriers, and infrastructure limitations.
This is why the emergence of innovative layer 1 solutions has proven to be timely, as we no longer experience some of the issues that plagued the early blockchain space. This article describes some of these Layer 1 solutions and how they have contributed to the evolution of the industry.
Blockchain trilemma
The blockchain trilemma is a term coined by Ethereum co-founder Vitalik Buterin. This refers to the challenges faced by three key aspects of blockchain technology: scalability, security, and decentralization. According to Vitalik, “The trilemma asserts that a blockchain system can only have at most two of the three properties at a time.” other developers are tackling the trilemma head-on with innovative solutions.
An innovative approach to solving the trilemma is sharding. This is a partitioning technique used to improve blockchain scalability. It divides the blockchain network into smaller “shards”, each shard has data and can process more transactions per second (TPS). Other solutions being considered are sidechains and state channels. A sidechain is a blockchain designed separately from the main chain. These perform specific tasks, reducing the load on the main chain. With state channels, the final state of a transaction is recorded on the main chain, allowing transactions to be executed off-chain.
Evolution of Layer 1 Blockchain Architecture
The components and subcomponents (layers) that make up a blockchain system are known as the blockchain architecture. Each layer within the system has a unique role, ranging from storing data to ensuring consensus throughout the system. Blockchains are made up of layers and there are four types of blockchains.
Public blockchain Private blockchain Hybrid blockchain Consortium blockchain
Of these, public blockchains face the most scalability issues due to their large user base. Anyone with an internet connection can access it. Examples of these are Bitcoin and Ethereum. Despite their popularity and functionality, these blockchains suffer from slow transaction speeds and high fees. Bitcoin processes up to 7 TPS, while Ethereum processes around 15 TPS. To address these issues, developers have been working on layer 1 solutions with key components placed on top of these legacy blockchains as upgrades.
These components include:
Consensus mechanisms (Proof of Stake (PoS), Proof of Work (PoW), Directed Acyclic Graph (DAG), Hybrid) Smart contracts Infrastructure Network Security Governance systems Interoperability features Economic models Development infrastructure ( API, SDK, Node Management) ) Performance Optimization Data Management
In recent years, there has been a shift towards specialized consensus mechanisms. In a blockchain, there is a simultaneous broadcast of different blocks, and it is these consensus mechanisms that decide which chain the network follows. An example of a modern layer 1 platform with some of the components listed here is Arthera. Arthera is an EVM-compatible layer 1 blockchain with native subscriptions, unparalleled scalability, and a DAG-based Proof-of-Stake consensus model.
User-centered blockchain design
Blockchain technology, ecosystems, and platforms are not all that easy to use, at least not yet. The accessibility of such innovative technology, especially its ease of adoption, cannot be overstated. For a long time, traditional blockchain platforms have been criticized for their complexity, requiring users to learn/understand technical concepts such as gas fees, blockchain addresses, consensus mechanisms, wallets and networks, private keys, etc. According to a research report by Triple-A, as of 2024, there are 560 million crypto holders around the world, and the average global crypto ownership rate is 6.8%. The Chainalysis report, dubbed the “2024 Crypto Spring Report,” showed that the number of active crypto wallets has crossed the 400 million address threshold.
These numbers could increase, but the industry can instead focus on accessibility through user-friendly interfaces, intuitive wallet infrastructure that mirrors the Web2 experience, and simplified onboarding processes. , we need to lower barriers to entry. This makes it easier for non-technical users to participate in the ecosystem. In addition to poor user interfaces, high transaction fees, and language barriers, blockchain services can be expensive and proprietary to a large portion of the world’s population. This accessibility problem is what popular Layer 1 platforms like Self Chain solve. It is a modular intent-centric access layer 1 blockchain and keyless wallet infrastructure service that uses MPC-TSS/AA for multi-chain Web3 access. Its ease of use helps simplify the DeFi process and allows everyone to participate in the revolution.
The future of blockchain infrastructure
The Layer 1 blockchain ecosystem is an important and large part of the blockchain industry. This is evidenced by its current market capitalization of $1.94 trillion, according to Coingecko. Bitcoin and Ethereum account for the majority at $1.3 trillion and $315 billion, respectively. While these are impressive numbers, the future of blockchain infrastructure is evolving towards more modular and interoperable systems. A system in which specialized layers work in harmony to address specific needs.
We are experiencing a paradigm shift from monolithic architectures to more flexible and purpose-built solutions. Platforms like Arthera and Self Chain exemplify this. The former’s EVM compatibility and DAG-based consensus mechanism allow it to achieve excellent levels of scalability while maintaining security and good transaction throughput. The latter incorporates advanced features such as MPC-TSS/AA technology and keyless wallet infrastructure to help break down traditional barriers to entry. These features and innovations usher in a future where blockchain platforms can be accessed just like traditional web applications, while preserving the decentralized capabilities of blockchain technology.
conclusion
We are at a pivotal moment in technology transformation and scalability. The projects discussed in this article do more than just increase industry numbers and capabilities. These are changing the way we interact with blockchain at a fundamental level.
With innovations in scalability, cross-chain compatibility, and user experience, we are finally seeing solutions to many of the problems that have long hindered mainstream adoption. Challenges remain, of course, but the foundations laid today by these new platforms are moving us closer to a more powerful and accessible blockchain future.
