A Layer 1 (L1) is a base blockchain with its own independent network, validators, and native token — Bitcoin, Ethereum, Solana, and Cardano are all Layer 1s. It's the foundational settlement layer that everything else in an ecosystem is ultimately built on or secured by, whether that's a Layer 2 scaling network, a DeFi application, or an NFT marketplace.
What distinguishes it from a Layer 2
A Layer 2 doesn't have its own independent security — it processes transactions off the base chain (often in batches) and periodically settles the results back to its underlying Layer 1, inheriting that chain's security rather than providing its own. A Layer 1, by contrast, is self-sufficient: it has its own consensus mechanism (Proof of Work or Proof of Stake), its own validator or miner set, and doesn't depend on any other chain to finalize transactions.
Why it matters for Shariah screening
Our methodology applies a tool-neutrality principle to Layer 1 protocols: a base chain with no interest-based or gambling mechanics of its own isn't penalized on riba or maysir for third-party applications built on top of it, the same way a road isn't held responsible for what gets transported on it. What we score directly is the Layer 1's own native mechanics — its consensus mechanism, its own staking design if applicable, its transaction fee model, and its tokenomics — not every DeFi app or NFT project that happens to deploy on the chain. This is why a Layer 1 can score well on Shariah compliance even while some applications built on it would not.