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What is Ethereum L1? Why Does It Still Matter in a Layer 2 World?

By Craig Green
Jun 26, 2025
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Ethereum L1. or Layer 1. refers to the Ethereum mainnet—the base layer of the most widely used smart contract platform in the world. As Layer 2 networks gain momentum, it's worth asking: what is Ethereum L1. and why does it remain so critical in the blockchain ecosystem?

What Is Ethereum L1 and How Does It Function?​​​​​​​​

Ethereum L1 is the original chain where all final settlements occur. It processes ETH transfers, smart contract execution, and decentralized application logic. Secured by proof-of-stake consensus since “The Merge” in 2022. it’s known for its robustness, neutrality, and deep decentralization.

Why Does Ethereum L1 Face Scalability Issues?

Ethereum L1 processes only a limited number of transactions per second. During high demand, this causes congestion and drives up gas fees. The design prioritizes security and decentralization, which has historically limited its throughput compared to centralized systems or newer chains.

What Are the Major Upgrades to Improve Ethereum L1?

Ethereum’s developers have introduced and tested several upgrades:

The Merge transitioned Ethereum to proof-of-stake, lowering energy use.

Dencun Upgrade introduced EIP-4844 (blobs), making L2 data posting cheaper.

Sharding (Planned): Long-term scaling strategy to split the blockchain into smaller parts.

Fusaka Devnet 2: Current testing of advanced EIPs like PeerDAS and CLZ Opcode for efficiency.

What Is EIP-7782 and Why Is It So Important?

Proposed recently, EIP-7782 would cut block times in half—from 12 seconds to 6. This means faster finality, improved dApp responsiveness, and a more competitive transaction confirmation time. Expected in the 2026 “Glamsterdam” upgrade, it’s a major boost for Ethereum L1’s user experience.

How Does Ethereum L1 Support Layer 2 Scaling?

Layer 2 solutions like Arbitrum and Optimism post data back to Ethereum L1 for finality and security. Upgrades like EIP-4844 (proto-danksharding) optimize this process using blobs, making data availability cheaper and faster. L1 remains the base trust layer that L2s rely on.

What Are the Latest Trends Affecting Ethereum L1?

Recent headlines include:

Testing of Fusaka Devnet 2. focusing on smart contract size reduction and new opcodes.

Continued focus by Vitalik Buterin on improving node access and statelessness.

Market-driven developments like Spot Ethereum ETFs, which boost ETH demand and L1 utility.

Why Is Ethereum L1 Still Essential in a Multi-Layered Ecosystem?

Even with powerful L2s, Ethereum L1 remains the final word for on-chain settlement. Its neutrality, immutability, and censorship resistance make it indispensable for financial contracts, DeFi, and DAOs. It’s the bedrock of Ethereum’s trust model.

Conclusion: 

Ethereum L1 may not always be the fastest, but it remains the most secure, decentralized, and trusted foundation of the Ethereum ecosystem. As Ethereum scales through L2s, the L1 layer continues to evolve, ensuring it’s ready for the future while staying true to its core principles.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of BitKan. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. BitKan shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. Products mentioned in this article may not be available in your region.

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