What are Layer 1 blockchains?

What Are Layer 1 Blockchains?

Layer 1 (L1) blockchains are the base networks that run their own consensus and security. Examples: Bitcoin, Ethereum, Solana, Cardano. They process and finalize transactions. Other chains or apps can be built on top of them (Layer 2). L1 tokens are often used for fees and staking. In India, gains from trading L1 tokens are taxable when you sell.