Layer2 Blockchain protocols are helping with the scalability to the L1 protocols. Others Blockchains like DComm are using subnets to scale the Blockchain. - blockchain layertwosolutionblockchain
Co-founder CEO of Zeeve - the leading web3 infrastructure as a service protocol, love to play chess and road runningBlockchain technology is quickly evolving, and enterprises are starting to take notice. Many businesses are investigating how they can use blockchain to improve their operations.that the business value generated by blockchain will grow rapidly, reaching $176 billion by 2025 by 2025 and $3.1 trillion by 2030.
I'll also provide some tips for how to get started with layer 2 deployment. So if you're interested in learning more about Ethereum scaling solutions, keep reading!First coined by Vitalik Buterin, blockchain trilemma refers to the difficulty that blockchains face in acquiring security, scalability, and decentralization at the same time.
For instance, Bitcoin and Ethereum use Proof-of-Work consensus algorithm, which is energy intensive and slow. This has led to the development of several projects that aim to improve blockchain scalability by upgrading the consensus mechanism. However, sharding does have some limitations, such as the need for additional communication between shards and the possibility of inconsistencies if shards fail to reach a consensus.These are separate blockchain protocols that interact with the main blockchain but are designed to handle a much higher volume of transactions. By moving some of the computationally intensive processes off-chain, Layer2 solutions can greatly increase the number of transactions a blockchain can process.
This allows for increased throughput while still retaining all of the security and decentralization of the Layer1 blockchain. The below graphics explain how unnecessary data is ignored and, with the help of Merkle roots roll-up system working: Along with the transaction batch, validity proof for the same is also submitted to L1. Now, as transactions are already verified, assets can be withdrawn almost instantly.
Here, block producers don't publish the transaction data on-chain but provide a cryptographic commitment to prove the availability of the data. Layer2 protocols are starting to emerge as a solution to both high transaction fees and slow transaction times. By using Layer2 protocols, users can take advantage of the speed and security of the underlying Layer1 protocol while also benefiting from increased throughput and reduced fees.