The blockchain landscape is continuously evolving, with numerous platforms emerging to address the limitations of earlier systems. A key focus for modern networks is interoperability—the ability for different blockchains to communicate and share data seamlessly. Alongside this, Layer 1 solutions form the foundational base layer of a blockchain ecosystem, responsible for its core consensus mechanism and security.
This guide explores some of the most notable interoperable and Layer 1 blockchain platforms, highlighting their unique architectures, value propositions, and roles within the wider Web3 ecosystem.
Understanding Interoperable and Layer 1 Blockchains
Before diving into specific projects, it's important to understand the core concepts.
A Layer 1 (L1) blockchain is the base network, such as Bitcoin or Ethereum, that validates and finalizes transactions on its own blockchain. Its native token is used to pay for transaction fees (gas).
Interoperability refers to the ability of different blockchain networks to share information and value without intermediaries. This is often achieved through bridges, cross-chain communication protocols like IBC, or shared virtual machines.
These technologies are fundamental to building a connected and efficient decentralized web (Web3), enabling assets and data to flow freely between previously isolated ecosystems.
Comprehensive List of Blockchain Platforms
Injective
Injective is an interoperable Layer-1 blockchain designed for building powerful DeFi and Web3 applications. It provides out-of-the-box modules for order books and derivatives, which are essential for creating mainstream DeFi apps. Applications with smart contracts enabled on Injective are natively compatible with both Ethereum and the Cosmos IBC, while also enabling instant transaction settlement. Users can access unlimited DeFi markets through trading dApps built on Injective, such as Helix.
U2U Network
U2U Network is a DAG-based, EVM-compatible blockchain that focuses on providing unlimited scalability and on-demand decentralization.
Elys Network
Elys Network is an oracle-based decentralized perpetual trading and leveraged lending platform featuring ETF-style multi-asset index pools. It is highly scalable, interoperable, and secure, offering high TPS and low transaction fees. Elys Network aims to become the PerpDex and all-in-one DeFi consumer chain for the Cosmos Hub.
Decent Land Labs
Decent Land Labs aims to combine EVM compatibility with Arweave's scalable storage, providing permanent data storage and full interoperability for developers on both EVM and Arweave blockchains. The company is developing an EVM-AO bridge and launched an EVM data indexer on AO in May of this year.
Datalayer
Datalayer is a novel Layer 1 blockchain and smart contract protocol that introduces native chains (lightweight, user-owned parallel chains), providing users with dedicated block space.
E Money Network
E Money Network is a MiCA-compliant modular blockchain. Operating as an L1, it aims to achieve seamless interoperability between DeFi 2.0 and Real World Asset (RWA) tokenization. The E Money Network ecosystem offers services such as RWA tokenization, launch platforms, lending, and on-chain credit scoring. Unlike traditional methods, it builds a modular foundation with built-in proof of identity, compliance, ownership, and custody.
Nexis Network
Nexis Network is an EVM blockchain and open-source platform for decentralized projects and applications. It can process up to 75,000 transactions per second, featuring instant finality, very low fees, and Solidity support.
SolarX
The SolarX cloud mining platform aims to revolutionize how individuals use SXCH mining equipment and also serves as a utility for the SXCH token. By combining the convenience of decentralized mining investments with the reliability of blockchain, SXCH Mining seeks to democratize access to crypto mining, making it accessible, profitable, and environmentally sustainable on a global scale—all powered by the SXCH token.
NuLink
NuLink provides privacy protection for decentralized applications via API, enabling developers, entrepreneurs, and small businesses to build their own applications with optimal security and privacy experiences.
XION
XION is a modular universal abstraction layer built for consumer adoption. It is developed by Burnt, a company that describes itself as a "Web3 foundry," offering a smart contract development toolchain.
Talus Network
Talus Network leverages the MoveVM to enhance performance, emphasizing that the Move stack is best capable of seamlessly integrating artificial intelligence with smart contract environments. It primarily fosters consumer-friendly web AI applications, particularly smart agents, to integrate seamlessly into daily on-chain activities.
5ireChain
5ire is a sustainable Layer 1 blockchain that rewards its validators and customers for taking sustainable actions.
Cycle Network
Cycle Network is an all-encompassing, trustless distributed ledger. Developers can create their dApps on a new layer without recreating code across different chains. Through abstracted accounts, users no longer need private keys or seed phrases to interact with dApps, reducing the gas fees involved. Furthermore, this new layer will employ the same security as rollup technology, making users feel secure when transferring assets across chains.
Black Panther
Black Panther is an asset management protocol based on Injective and Terra. Its vault strategies help users earn yields through digital assets, with profits automatically compounded.
Hydro Protocol
Hydro Protocol is a native liquid staking derivatives protocol on Injective. It allows the Injective community to stake INJ and mint hINJ (liquid INJ) tokens at a 1:1 ratio to earn staking rewards. These hINJ tokens can then be deployed on other protocols for additional yield. Hydro's unique aspect is its commitment to rewarding liquidity providers based on their overall contribution to the ecosystem.
Popular and Established Projects
Optimism
Optimism was the first to develop an Optimistic Rollup solution compatible with the Ethereum Virtual Machine (EVM). It operates parallel to Ethereum, capable of processing transactions at scale while inheriting Ethereum's security.
Base
Base is a Layer 2 network built on Optimism's OP Stack and incubated internally by Coinbase. This blockchain is seeded with Coinbase's products, users, and assets and is intended to be an open ecosystem.
Sui
Sui is a next-generation smart contract platform powered by Move, featuring high throughput, low latency, and an asset-oriented programming model. Its original contributor, Mysten Labs, believes Sui's data model will make it the first internet-scale programmable blockchain platform. The Sui tech stack addresses three core problems in the blockchain space: scalability, secure programming, and mainstream adoption. Sui's unique object-centric data model and consensus architecture allow the network to scale its capacity infinitely. Its programming language, Sui Move, includes security safeguards to prevent common hacks and exploits, offering a better developer experience. Additionally, Sui plans to add features that allow applications to subsidize and abstract consumer gas fees, enabling a smoother user experience.
Scroll
Scroll is a native zkEVM Layer 2 solution for Ethereum. It enables native compatibility with existing Ethereum applications and tools. Scroll processes transactions off-chain and publishes succinct proofs of correctness on-chain. This results in higher throughput and lower costs compared to the Ethereum base layer.
Sei
Sei is a high-performance Layer 1 network focused on trading scenarios. The project is developed based on the Cosmos SDK, and its core is a trading infrastructure based on a Central Limit Order Book (CLOB). This allows Sei to not only integrate with dApps on its own chain but also leverage the liquidity of the entire Cosmos ecosystem and create markets for assets on Sei. It is a purpose-built Layer 1 blockchain where applications can be built on top of the CLOB, and other Cosmos-based blockchains can utilize the CLOB as a shared liquidity hub for other assets.
Starknet
Starknet is a permissionless Layer 2 network developed by StarkWare, where anyone can deploy smart contracts written in the Cairo language. It aims to allow Ethereum to scale via a cryptographic protocol called STARKs without compromising Ethereum's core principles of decentralization, transparency, inclusiveness, and security. The Starknet token is necessary for (i) governance, (ii) paying transaction fees on Starknet, and (iii) participating in Starknet's consensus mechanism to operate, maintain, and secure the ecosystem.
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Frequently Asked Questions
What is the main advantage of an interoperable blockchain?
The primary advantage is the ability to share data and assets across different blockchain networks. This breaks down silos, enhances liquidity, allows developers to combine the best features of various chains, and creates a more unified and powerful user experience in the decentralized ecosystem.
How does a Layer 2 solution differ from a Layer 1 blockchain?
A Layer 1 blockchain is the underlying base settlement layer (e.g., Ethereum, Bitcoin). A Layer 2 is a separate protocol built on top of a Layer 1 to improve its scalability and efficiency. L2s process transactions off-chain or in a more efficient manner and then post the final data back to the L1 for security, inheriting the base layer's security while offering higher speed and lower cost.
Why is interoperability critical for the future of DeFi?
Interoperability allows decentralized finance to function as a cohesive system rather than a collection of isolated applications. It enables capital to flow freely to where it is most efficient, allows for the creation of complex cross-chain financial products, and significantly improves the user experience by reducing the need for multiple wallets and bridge transactions.
What does EVM-compatibility mean for developers?
EVM (Ethereum Virtual Machine) compatibility means a blockchain can execute smart contracts written in Solidity (Ethereum's programming language) and interact with tools built for Ethereum, like MetaMask and Hardhat. This allows developers to easily port their existing Ethereum dApps to a new chain with minimal code changes, greatly expanding their reach and leveraging the chain's potentially higher performance or lower costs.
Are there risks associated with cross-chain bridges?
Yes, cross-chain bridges have been a major target for hackers in the past. Because they often hold large amounts of locked assets, they present a attractive target. Security risks can include smart contract vulnerabilities, flaws in the bridge's design, and validator manipulation. It's crucial to use well-audited and established bridges.
What is liquid staking?
Liquid staking is a process where users stake their native tokens (e.g., INJ, ETH) with a protocol and receive a derivative token (e.g., hINJ, stETH) in return. This derivative token represents their staked position and continues to earn staking rewards. The key benefit is that the derivative token is liquid and can be used in other DeFi protocols to generate additional yield, unlike traditionally staked tokens which are locked and illiquid.