#EthereumScaling #twitterchat @WWCodeBlock

There are lot of scaling solutions available in the blockchain ecosystem.Different approaches, on Layer1(On-chain) and Layer2(Off-Chain) are being experimented with, to achieve the end goal of faster and cheaper transactions at scale.

Scaling approaches can be classified in two major verticals:

1. Layer 1 approach or On-Chain scaling
2. Layer 2 approach or Off-Chain solutions
#EthereumScaling #ethereum #ethereumscale #TwitterChat #wwcodeblockchain #ETH #TwitterChat #ethereumblockchain #ethers #Wednesday

Layer 1/On-Chain scaling refers to any increase in capacity at the core blockchain layer. It increases the amount of data that can fit in each block. By raising the data limit, you can fit more transactions in each 13 second block interval.

Layer 1/On-Chain includes authentication & validation of a transaction by a defined number of participants.

Layer2 approach or Off-Chain solutions allows the transactions dealing with the values outside the blockchain and can be carried out using different number of methods.

However, Layer1 / Off-Chain are tethered to, a layer-one blockchain. Authenticated assertions are submitted to the parent-chain only in cases of a dispute, with the parent- chain deciding the outcome of the dispute.

Security and non-custodial properties of a layer-2 protocol rely on the consensus algorithm of the parent-chain.

Layer 2 or off Off-Chain solutions are categorized into the following:
1) State Channels
2) Sidechains/Plasma Architecture
3) Other approaches — Truebit.

Example : Matic Network has Layer 2 / Off- chain scaling solution based on an adapted Plasma framework.

As Vitalik Butlerin said in an interview:

The reason I think layer 1 and layer 2 are complementary is because ultimately, if you look at the math, the scalability gains from the layer 1 improvements and layer 2 improvements do ultimately multiply with each other contd...

If you have a Sharding solution, the Sharding solution itself might increase the scalability of Ethereum by a factor of 100, or eventually even more. But then, if you do Plasma on top of the scalability solution, then what that means is, you’re not just doing 100 times contd...

of the amount of activity but you are doing 100 times the amount of entrances, the amount of exits, and dispute resolutions”

Scalability Increased on Ethereum 2:

Optimistic rollup is a scaling for smart contracts and decentralized applications on Ethereum.
#vitalik #Ethereum

As Vitalik in an interview:
“It provides scalability gains that are not as large as you can get with sharding or with plasma or stay channels, but it provides scalability gains that are very real. We can expect to see about 4,000 transactions per second in the absolute best case”

“Optimistic rollup is the scalability technique that says, ‘We’re going to put the computation off chain. We’re going to put data on chain. And data is generally cheaper than computation and we’re going to try really hard to compress the data,'”.
#performance #ETH #optimistic

“Honestly, even if Ethereum 2.0 was delayed by another two or three years, this thing could easily carry us all the way until then.”

#ProofofStake #Serenity #Ethereum #Ethereum2 #network #smartcontracts #EthereumUpdate #validators #algorithm #blockchaintechnology #blockchain