Scalability has been one of the most discussed topics attached to every blockchain
Is there a perfect solution?
#DeFi #L2 #Ethereum
🧵
Is there a perfect solution?
#DeFi #L2 #Ethereum
🧵
Scalability is the ability of a blockchain to process a large no of transactions without affecting the transaction fees and transaction throughput.
To scale a blockchain you can either:
📍SCALE THE BASE LAYER (L-1)
📍OUTSOURCE SOME OF THE WORK TO A NEW LAYER -L2
To scale a blockchain you can either:
📍SCALE THE BASE LAYER (L-1)
📍OUTSOURCE SOME OF THE WORK TO A NEW LAYER -L2
Layer 2 is a protocol that is built on top on an existing blockchain (L1) with the sole purpose of improving the scalability and
efficiency of the existing blockchain.
There are different types of scaling solution:
efficiency of the existing blockchain.
There are different types of scaling solution:
📍Rollups:
This solution rollup a bunch of transactions into a single transaction and push it into the actual blockchain.
📍Sidechain:
They are secondary blockchain that run parallel to the side of main chain. They borrow info from the main chain, use their
Virtual...
This solution rollup a bunch of transactions into a single transaction and push it into the actual blockchain.
📍Sidechain:
They are secondary blockchain that run parallel to the side of main chain. They borrow info from the main chain, use their
Virtual...
...machines to execute smart contract and send back to the main blockchain. Polygon is a side chain of Ethereum.
📍Channels
It involves locking up your actual funds and then trading a virtual version of your funds on a network that is much faster.
📍Channels
It involves locking up your actual funds and then trading a virtual version of your funds on a network that is much faster.
A simple analogy is the transfer of funds from your bank Mobile apps. You don't transfer real mon3y but Virtual money.
📍Plasma:
It uses child chains or plasma chain which have their OWn child chain that can broadcast important operations to the main chain.
📍Plasma:
It uses child chains or plasma chain which have their OWn child chain that can broadcast important operations to the main chain.
WHY DOES ETH NEED LAYER 2
SOLUTIONS?
📍Speed, fast processed transaction low transaction fees
📍Encourages builders of interesting innovations on ETH network.
📍Experimentation away from the
blockchain.
SOLUTIONS?
📍Speed, fast processed transaction low transaction fees
📍Encourages builders of interesting innovations on ETH network.
📍Experimentation away from the
blockchain.
If something goes wrong, There'll be no impact on the actual Ethereum network.
Since L2 is entirely separate from the blockchain network. It has it own nodes software and is responsible for its own
security.
Since L2 is entirely separate from the blockchain network. It has it own nodes software and is responsible for its own
security.
Example of popular L2 we might know
*Arbitrum is an L2 solution on Ethereum
*Polygon(MATIC) is an L2 solution on Ethereum
*Aurora is an L2 solution on NEAR
*Milkomeda is an L2 solution on Cardano
LEARN SOMETHING NEW?
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*Arbitrum is an L2 solution on Ethereum
*Polygon(MATIC) is an L2 solution on Ethereum
*Aurora is an L2 solution on NEAR
*Milkomeda is an L2 solution on Cardano
LEARN SOMETHING NEW?
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