Layer 1

To be considered a base layer, or Layer 1 network, a blockchain must offer users a combination of decentralization, security, and scalability. To achieve this combination Layer 1 blockchains incorporate a consensus mechanism like proof of work or proof of stake. 

Therefore Layer 1 protocols need to issue a cryptoasset to ensure a sound cryptoeconomic foundation for the consensus mechanism employed. This ensures a sufficient number of nodes participate in the consensus process to secure the network in a decentralized manner. Which provides other applications, protocols, and networks the confidence required to build on top of it.

Further Reading Layer 1

Layer-1 and Layer-2 Blockchain Scaling Solutions