Layer-1 Solutions To Look Out for in 2023
With the exponential growth of the crypto market in recent months, many Layer-1 solutions — not named Ethereum and Bitcoin — have continued to gain more and more mainstream prominence.
In short, layer-1 networks can be viewed as standalone blockchains that are capable of processing and finalizing transactions by themselves entirely. These networks are usually governed by a native cryptocurrency that helps facilitate various internal transactions such as payment of gas fees, voting on administrative proposals, etc.
That said, traditionally, Layer-1 blockchains have suffered from issues related to low scalability, latency, and poor transaction throughput, but over the last couple of years, more and more solutions have emerged that have helped mitigate these issues completely. In this article, we will seek to list some of these platforms and their core features. So without any further ado, let’s jump straight into the heart of the matter.
Radix (XRD) is a L-1 solution that is infinitely scalable which delivers true decentralization thanks to its use of its native consensus mechanism called Cerberus. The project is designed to deliver extremely fast transaction rates, especially compared to some of its closest rivals, including Ethereum, Avalanche, Cardano, Polkadot, etc. To this point, Radix has repeatedly showcased transaction speeds of over 1 million TPS during live trials.
The project features the Radix Engine, which harnesses the power of structured finite state machines (FSMs) to manage tokens and other assets, allowing developers to save a lot of time when it comes to devising novel smart contracts and instead focus on building dApps that are capable of processing complex DeFi transactions easily.
Also, Radix makes use of an asset-oriented coding language called Scrypto, which is extremely developer friendly and, as a result, needs users to punch in a lot lesser lines of code to program dApps, particularly in comparison to Ethereum’s Solidity.
Aptos is a scalable Layer 1 blockchain helmed by the same individuals who helped develop Meta’s now defunct Diem blockchain. Since its inception, the project has witnessed multiple funding rounds worth $350M led by prominent entities such as FTX, Parafi, Andreessen Horowitz, Multicoin Capital, and Haun Ventures.
The project’s fast-growing popularity can be attributed to its use of a technology called “parallel execution,” which helps maximize its native transaction speeds while minimizing gas costs. To elaborate, most blockchains today process transactions sequentially, where it is absolutely necessary that each transaction be added to the ledger after it has been verified, making the entire process quite time-consuming.
On the other hand, parallel execution allows these transactions to be processed across multiple chains simultaneously. As a result, Aptos can deliver speeds of approximately 130,000 transactions per second.
Sui is a permissionless Layer 1 blockchain devised from the ground up. It uses a decentralized, proof-of-stake framework and, much like Aptos, harnesses the power of a horizontally scalable throughput and storage module, allowing for extremely low levels of transaction latency. The project uses the Move Virtual Machine and, thanks to its novel design, has raised a total of $176M from FTX Ventures and VC giant a16z.
Thanks to its parallel execution design, Sui can offer its clients high scalability and near-instant settlement of transactions. Not only that, but it also offers extremely low gas fees irrespective of network traffic.
Harmony is best described as an L-1 network that uses the Effective Proof of Stake (EPoS) consensus mechanism. Its mainnet supports four shards, with each offshoot allowing for the creation and verification of new data blocks in unison. On a technical front, the project utilizes several trustless bridges that help it connect seamlessly to a variety of ecosystems, including popular ones like Ethereum and Bitcoin. Lastly, the project has an inbuilt, highly advanced NFT infrastructure and comes replete with various DAO-centric tools.
Celo is is an L-1 ecosystem that deploys a Proof of Stake (PoS) design alongside a new, novel address system. The project has been designed to be Web3 ready and comes with many tools focused solely on domains such as DeFi, NFTs, and payment solutions. One of the most talked about aspects of Celo is that it allows anyone across the globe to use their phone number or email address as a public key. As a result, people lying anywhere on the planet can gain access to high-quality financial services seamlessly.