Smart Contract Platforms (Layer 1s)
Note: Data in this section last updated September 12th, 2022
Smart contract platforms, also known as “Layer 1s”, serve as the foundation of Web3. They are the computers that set the rules for the ecosystem and allow users to create, store and trade cryptocurrencies and digital assets such as NFTs. Every time that you make a trade on Uniswap, lend money on Aave, mint an NFT on Opensea or vote in a DAO you need to use (and pay) a Layer 1 such as Ethereum.
Smart Contracts Execute Automatically When Predetermined Conditions Are Met
Keeping with the ethos of Web3, smart contract platforms are decentralized and distributed, meaning that they aren’t controlled by any one party, they can never be shut down and anyone can use them at any time.
I won’t go into too much detail on smart contract platforms here but given their extreme importance, I’d highly recommend learning more via the article “The Complete Beginner's Guide to Smart Contract Platforms”, which dives into how they work, why they are important, who the key players are, how they stack up against one another and what’s next for the space.
As of September 2022, the largest smart contract platforms by fully-diluted market capitalization are Ethereum, Binance Smart Chain, Cardano, Solana and Avalanche.
Ethereum Leads the Market with over 55% of FD Market Cap
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