Consensus Network
Layer1 is the foundational protocol of blockchain, with consensus and smart contracts at its core. It serves as the foundation for decentralized computing and is primarily responsible for handling core functions such as consensus mechanisms, data storage, transaction verification, and execution of smart contracts in the network. Smart contracts are a simple computing model, in a sense, a Serverless approach. There are many blockchain projects that implement Layer 1, mostly based on the Ethereum model. Decentralized computing includes Ethereum, Eos, Cosmos, Polkad ot, Algorand, Dfinity, Solana, Near, and more.
On Layer 1, the main way to achieve on chain privacy is to use cryptographic techniques such as zero knowledge proofs and homomorphic encryption to encrypt blockchain data, including data privacy in privacy transactions and smart contracts such as Monero, Zcash, Manta, as well as Aztec and Raze Framework based on other Layer 1 networks.
Core features of Layer1
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Consensus network:
Consensus is a key mechanism in ensuring data consistency and security in blockchain networks. Different Layer1 projects may use different consensus algorithms, such as Proof of Work (PoW), Proof of Stake (PoS), or hybrid consensus. The choice of consensus mechanism directly affects the performance, security, and degree of decentralization of blockchain networks. -
Smart Contract:
Smart contracts are automatically executed contracts that perform predetermined actions when specific conditions are met. Smart contracts run on the blockchain and have characteristics such as decentralization, transparency, and immutability.
The widespread application of smart contracts enables blockchain to support more complex business logic and decentralized applications (DApps).
Layer 1’s blockchain project
At present, there are numerous blockchain projects implementing Layer1, many of which adopt the Ethereum model. These projects include but are not limited to Ethereum, Eos, Cosmos, Polkadot, Algorand, Dfinity, Solana, and Near. These projects have their own unique features in consensus mechanisms, smart contract execution, performance optimization, and jointly promote the development of blockchain technology.
On chain privacy protection technology
Implementing on chain privacy protection on Layer1 is one of the important directions for the development of blockchain technology. The main technologies currently used include zero knowledge proofs and homomorphic encryption in cryptography.
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Zero knowledge proof:
Zero knowledge proof is a technique that allows a prover to prove to a verifier that a statement is true without revealing any information about the content of the proof itself. In blockchain, zero knowledge proofs can be used to protect transaction privacy, allowing validators to confirm the validity of transactions without knowing the specific content of the transaction. -
Homomorphic encryption:
Homomorphic encryption is an encryption method that allows computation to be performed on encrypted data and yields an encrypted result without the need to decrypt the data first. In blockchain, homomorphic encryption can be used to protect data privacy in smart contracts, enabling them to perform calculations and verifications without leaking data.
On chain privacy protection project
At present, some projects have implemented on chain privacy protection on Layer1, such as Monero, Zcash, Manta, etc. In addition, there are some privacy protection frameworks based on other Layer1 networks, such as Aztec and Raze Framework. These projects and frameworks provide users with a higher level of privacy protection by adopting advanced cryptographic techniques.