Layer 2 Blockchain Scaling Solutions | Resolving Scalability Issues
Blockchain solutions development has changed various industries by providing decentralization of money, high levels of security, and irreversible record-keeping. Decentralization refers to the meaningful distribution of processing power and consensus throughout a network, while security refers to a blockchain protocol’s protection against bad actors and network assaults. A blockchain in an ideal world would be capable of processing an infinite number of transactions per second TPS (Transactions per second). On the other hand, the Bitcoin main chain can only handle 3-7 TPS. Scalability is essential because it is the only way for blockchain networks to compete on an equal footing with older, centralized systems that offer faster settlement times. Using Layer-2 scaling techniques is one option. Layer 2 refers to a supplemental framework or protocol built on top of an existing blockchain system. Bitcoin and Ethereum are currently unable to accomplish thousands of TPS, limiting their long-term growth. Layer-2 protocols provide an additional foundation for blockchain transactions and operations that do not reliant on layer-1 protocols (main chain). As a result, these solutions are sometimes known as “off-chain” scaling possibilities. Layers 1 and 2 are linked, and a summary of Layer 2 transactions is uploaded to Layer 1 at regular intervals for archival purposes. Instead of sending every transaction via Layer 1, it works to handle these transactions on a parallel blockchain known as “Layer 2” to avoid congestion. There are basically 2 types of Layer-2 solutions Rollups and Channels Rollups (Optimistic Rollups and Zero-Knowledge Rollups) Sidechains and Plasma Chains State Channels To bring to market L2 scaling solutions and DApps that will aid the world’s transition to a decentralized economy, the whole crypto sector will have to join forces, constantly develop, and interact with one another. For more info, connect with our team at marketing.blockchain@oodles.io