Is Ethereum a layer 1 blockchain?

Ethereum and Bitcoin are both layer 1 blockchains because they are the underlying foundation that various layer 2 networks build on top of. Examples of layer 2 projects include "rollups" on Ethereum and the Lightning Network on Bitcoin. All user transaction activity on these layer 2 projects can ultimately settle back to the layer 1 blockchain.

Why is Ethereum a data availability layer?

Ethereum also functions as a data availability layer for layer 2s. Layer 2 projects will post their transaction data onto Ethereum, relying on Ethereum for data availability. This data can be used to get the state of the layer 2, or to dispute transactions on layer 2. A network of node operators to secure and validate the network

What is Ethereum mainnet (layer 1)?

Ethereum Mainnet (layer 1) is only able to process roughly 15 transactions per second. When demand to use Ethereum is high, the network becomes congested, which increases transaction fees and prices out users who cannot afford those fees.

What is Ethereum (ETH)?

Ethereum's native cryptocurrency is Ether (ETH). Ethereum's blockchain comprises a sequence of "blocks" filled with transactions. Each transaction reflects a change in the Ethereum network's state, such as the transfer of ETH from one user to another, or the execution of a smart contract.