What Are Layer 1 Blockchains and Why Are They Critical for the Future?
Layer 1 blockchains are the foundational protocols that serve as the base infrastructure for decentralized networks. Unlike Layer 2 solutions that improve scalability on top of existing chains, Layer 1 blockchains directly manage transaction validation, consensus mechanisms, and on-chain governance.
Over the next decade, Layer 1 blockchains will play a crucial role in:
- Tokenization of Real-World Assets (RWAs): Real estate, private equity, and commodities.
- Compliant Financial Ecosystems: Automated KYC/AML checks embedded directly into transactions.
- Decentralized Identity Verification: Self-sovereign identities replacing centralized databases.
- Cross-Border Payments: Instant global transactions without intermediaries.
- Fractional Ownership Models: Democratizing access to high-value assets.
The rise of custom Layer 1 blockchains like LQDTY is unlocking new frontiers of digital finance where regulatory compliance, speed, and transparency are built into the very core of the network.
Avalanche: Custom Subnets for Regulated Markets
USP: Permissioned Subnets + Instant Finality
Avalanche has become the go-to blockchain for institutions due to its unique Subnet architecture — allowing anyone to launch custom blockchain networks under Avalanche’s security umbrella.
Key Features:
- Subnets: Custom, permissioned blockchains with their own validators.
- Instant Finality: Transactions settle in under 1 second.
- Eco-Friendly Proof-of-Stake Consensus: Consumes just 0.0005% of the energy of Bitcoin.
- Compliance Tools: Native support for KYC/AML integrations.
Why It Matters: Avalanche is proving that compliant, regulated financial products can thrive on decentralized infrastructure — especially in tokenized securities and private equity markets.
LQDTY: The Blockchain Built for Private Equity Markets
USP: Compliance + Instant Settlements + Fractional Ownership
LQDTY is not just another Layer 1 blockchain — it's a specialized protocol designed to power private equity markets in the digital era. Built exclusively for the Liquidity platform, LQDTY addresses the unique pain points of private investments, such as illiquidity, lack of transparency, and compliance overhead.
Key Features:
- Built-in Compliance: Automated KYC/AML checks and investor accreditation at the protocol level.
- Fractional Ownership: Tokenize private equity assets into smaller, tradeable units.
- Instant Settlements: No middlemen, no waiting periods.
- On-Chain Transparency: Every investment lifecycle stage is recorded immutably.
- Liquidity Pools: Secondary market trading of private equity tokens.
- Low Gas Fees: Transactions at a fraction of Ethereum’s costs.
The LQDTY Utility Token Powers Everything
LQDTY is more than just a native token — it’s the engine of the entire investment ecosystem:
- Paying transaction fees
- Tokenizing private equity assets
- Participating in liquidity pools
Book a Free Demo Call now and discover how our platform can help you achieve your investment goals.
Aptos: The High-Throughput Pioneer
USP: Scalable Infrastructure + Move Programming Language
Aptos has made waves with its mission to become the most scalable and production-ready Layer 1 blockchain. Built by ex-Facebook engineers, Aptos leverages the Move programming language, which was originally designed for Diem (Facebook's crypto project).
Key Features:
- Parallel Execution Engine (BlockSTM): Executes multiple transactions simultaneously, drastically improving throughput.
- Move Language: Advanced security features with formal verification for smart contracts.
- Modular Design: Separates consensus, execution, and storage for greater flexibility.
- Transaction Speed: Over 160,000 transactions per second (TPS) in testing.
Why It Matters: Aptos is setting new performance benchmarks for both DeFi and digital asset tokenization — making it a perfect candidate for scalable financial products.
Sui: Scalable Digital Asset Infrastructure
USP: Object-Based Data Model + Parallel Execution
Sui is redefining how digital assets are stored and transferred. Unlike traditional blockchains, Sui treats assets as independent objects — making it easier to handle complex asset tokenization use cases like NFTs and fractional ownership.
Key Features:
- Object-Based Storage Model: Each asset is its own unique on-chain object.
- Horizontal Scalability: Performance improves as more validators join the network.
- Gas Fee Optimization: No sudden fee spikes.
- Parallel Execution: Simultaneous transaction processing without bottlenecks.
Why It Matters: Sui's architecture is built for the tokenization of real-world assets (RWAs), making it one of the most promising Layer 1 blockchains for asset-backed securities and fractional investments.
Cosmos: The Internet of Blockchains
USP: Interoperable AppChains
Cosmos solves the blockchain fragmentation problem by enabling different blockchains to communicate via its Inter-Blockchain Communication (IBC) protocol. Projects can build custom Layer 1 chains using the Cosmos SDK while remaining interoperable.
Key Features:
- Tendermint BFT Consensus: Instant finality with high security.
- IBC Protocol: Seamless cross-chain transfers between sovereign blockchains.
- Custom AppChains: Tailored blockchains for private finance or asset tokenization.
- On-Chain Governance: Community-driven protocol upgrades.
Why It Matters: Cosmos is ideal for creating interoperable financial ecosystems where different investment products can flow across multiple chains without friction.
The Future of Blockchain Layer 1: Where Are We Headed?
Blockchain Layer 1 networks are rapidly transforming from generic protocols into industry-specific infrastructure. In the next five years, we expect:
- Hybrid Public-Private Blockchains: Combining the transparency of public chains with the security of private networks.
- On-Chain Compliance Protocols: Automated regulatory checks without third parties.
- Zero-Knowledge Proofs (ZKPs): Privacy-preserving transactions in regulated markets.
- Decentralized Identity Standards: Replacing centralized KYC providers.
- Tokenized Private Equity Markets: Fractional ownership becoming mainstream.
LQDTY is already pioneering this future — making private equity investment more accessible, transparent, and compliant than ever before.
👉To celebrate the launch of LQDTY, we’re offering $10 worth of LQDTY tokens to every new user who signs up on our platform.
📅 Book your FREE demo call now and discover how our platform can help you achieve your investment goals.
The future of private equity is here — and it’s powered by LQDTY.
