Blockchain Networks Overview

Different blockchain networks serve different purposes and have unique characteristics.

Layer 1 Blockchains

First cryptocurrency (2009)

Store of value focus

Limited smart contract capability

~7 transactions per second

Smart contract platform (2015)

Largest DeFi ecosystem

Proof of Stake consensus

~15-30 transactions per second

High-speed transactions

Proof of History + PoS

~65,000 TPS theoretical

Lower fees than Ethereum

Academic research-driven

Proof of Stake (Ouroboros)

Focus on formal verification

Gradual feature rollout

Built on top of Layer 1s for scalability:

**Arbitrum**: Optimistic rollup on Ethereum

**Optimism**: Another optimistic rollup

**Polygon**: Ethereum sidechain and more

**Lightning Network**: Bitcoin scaling

Consider:

Transaction speed needs

Cost sensitivity

Security requirements

Developer ecosystem