Blockchain Not Crypto   – Layer 1 Explained

What do you know about the infamous “blockchain”? Most people associate blockchain with cryptocurrency (crypto for short). The fact is, crypto is just one of many applications of blockchain technology. It is being used across a wide array of industries – financial services, healthcare and real estate to name a few. This brings us to Layer 1 … the one stop shop for all things blockchain. Our mission is to create a global stage for incubating and promoting the best blockchain ideas. Our professional network will be comprised of individuals residing across the globe and developing expertise in a variety of industries utilizing blockchain to further optimization of processes and traditional methodologies.

So WHY KEEP READING? Because Layer 1 strives to provide you with the most up-to-date knowledge and news surrounding the blockchain space in parallel with cultivating an invaluable ecosystem of thought sharing and networking opportunities.

Blockchain – Crypto is a Misnomer

Blockchain – commonly defined as a technology that enables a distributed ledger of transactions that can be secured by cryptography and verified by consensus. There are various types of blockchain technologies, and each starts with an underlying protocol – oft referred to as LAYER 1.

Cryptocurrency – commonly defined as a type of digital asset that uses blockchain technology to record transactions and transfers. An example is Bitcoin (BTC) – a type of crypto that runs on its own blockchain layer 1 protocol.

Blockchain itself is a technology, while crypto itself is a type of digital asset created with blockchain technology (think BTC) and is the subject of global regulatory scrutiny as governments try to figure out what regulations digital assets (of which there are many different types) are subject to.

Utility of Blockchain

Blockchain has many potential benefits (+), but we must be realistic and understand there are draw backs (at least today) as well (-).

+ Transparency                        – Scalability

+Immutability                         – Complexity

+Efficiency                               – Cost

+Potential Innovation            – Potential Environmental Impact

 

Top Use Cases for Blockchain Existing Today

Money Transfer – blockchain tech is utilized by financial institutions to facilitate money movements and payments (domestically and internationally)

Smart Contracts – blockchain tech has created “smart contracts” that act like standard contracts but independently execute and enforce the obligations of the contract via the blockchain

Internet of Things – blockchain tech facilitates the coordination and communication between decentralized devices collaborating to provide a unified service (think smart home devices)

Personal Identity Security – blockchain tech is used to safeguard accessibility to and storing of personally identifiable information to prevent increased risk of exposure due to hacks

Healthcare – blockchain tech is used to reduce healthcare costs and improve access to information through developing secured processes to share private healthcare information across stakeholders

Logistics – blockchain tech is used to create efficiencies and reduce cost of logistics for companies handling massive amounts of inventory (think DHL – supply chain management for shipping items)

NFTs – blockchain tech created non-fungible tokens (a type of digital asset) to provide consumers direct ownership of digital & physical items (think videos, GIFs, digital trading cards, music, art)

Government – blockchain tech is used by the public sector to secure government documents and is being developed to create efficiencies and prevent fraud within standard election processes

Media – blockchain tech is used to facilitate the digitization of media to protect against intellectual property infringement (including copyright infringement) and to maintain data integrity

Layer 1 is the Fundamental Pillar to Blockchain

The underlying “layer 1” protocol supporting blockchain technologies is the chain tying all pieces of a blockchain together. Like the technology itself, Layer 1 (our company) will connect global professionals to promote the collaboration of ideas and knowledge that can serve as an invaluable resource to those seeking to develop a network within and knowledge of this growing space.

Post Date: August 2, 2023