✨Layer-1 & Layer-2 Blockchain Scaling Solutions
For blockchains to compete with legacy payments processors, they need to be able to process high volumes of transactions quickly, at a low cost.
▫️Why is Scalability Important?
The main goal of scalability is to increase transaction speed (faster finality) and transaction throughput (higher transactions per second) without sacrificing decentralization or security.
▫️There are 2 primary ways to achieve blockchain scalability: Layer-1 & Layer-2 Solutions. 👇👇
1️⃣ LAYER-1
It's a network that acts as infrastructure for other applications, protocols, and networks to build on top of. A public decentralized layer-1 network's primary characteristic is its consensus mechanism.
🔹#Bitcoin
🔹#LItecoin
🔹#Algorand
🔹#Cardano
🔹#Hedera
🔹#Solana
🔹#Ethereum 2.0 is one high-profile blockchain protocol that is exploring shards, along with #Zilliqa, #Tezos, and #Qtum.
2️⃣ LAYER-2
It refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major crypto networks.
🔹#Polygon
🔹#Arbitrum
🔹#Loopring
🔹#ImmutableX
🔹#xDaiChain
▫️Layer-1 vs Layer-2 Key Differences
The main difference between layer-1 vs layer-2 scalability solutions lies in their role and focus on the blockchain. 👇👇👇
🔅Layer-1 is here to improve the blockchain architecture, while layer-2 is here to build third-party networks on top of the main blockchain.
🔅Layer-1 can provide the most effective solution in large-scale protocol upgrades. However, using this method also means that the validator must be convinced to accept changes via a hard fork.
🔅Layer-2 provides a faster way to increase scalability. However, users can potentially lose the level of security of the original blockchain due to the use of third parties.
▫️Conclusion
👉🏻Layer-1 and layer-2 are just two sides of the same scaling solution. Therefore, they have a strategy designed to make the blockchain network faster and more accommodating for a rapidly growing user base.
👉🏻These strategies also do not outperform each other, and many blockchain networks are exploring combinations of layer-1 and layer-2 scaling solutions on blockchains to achieve increased scalability without compromising security or adequate decentralization.
For blockchains to compete with legacy payments processors, they need to be able to process high volumes of transactions quickly, at a low cost.
▫️Why is Scalability Important?
The main goal of scalability is to increase transaction speed (faster finality) and transaction throughput (higher transactions per second) without sacrificing decentralization or security.
▫️There are 2 primary ways to achieve blockchain scalability: Layer-1 & Layer-2 Solutions. 👇👇
1️⃣ LAYER-1
It's a network that acts as infrastructure for other applications, protocols, and networks to build on top of. A public decentralized layer-1 network's primary characteristic is its consensus mechanism.
🔹#Bitcoin
🔹#LItecoin
🔹#Algorand
🔹#Cardano
🔹#Hedera
🔹#Solana
🔹#Ethereum 2.0 is one high-profile blockchain protocol that is exploring shards, along with #Zilliqa, #Tezos, and #Qtum.
2️⃣ LAYER-2
It refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major crypto networks.
🔹#Polygon
🔹#Arbitrum
🔹#Loopring
🔹#ImmutableX
🔹#xDaiChain
▫️Layer-1 vs Layer-2 Key Differences
The main difference between layer-1 vs layer-2 scalability solutions lies in their role and focus on the blockchain. 👇👇👇
🔅Layer-1 is here to improve the blockchain architecture, while layer-2 is here to build third-party networks on top of the main blockchain.
🔅Layer-1 can provide the most effective solution in large-scale protocol upgrades. However, using this method also means that the validator must be convinced to accept changes via a hard fork.
🔅Layer-2 provides a faster way to increase scalability. However, users can potentially lose the level of security of the original blockchain due to the use of third parties.
▫️Conclusion
👉🏻Layer-1 and layer-2 are just two sides of the same scaling solution. Therefore, they have a strategy designed to make the blockchain network faster and more accommodating for a rapidly growing user base.
👉🏻These strategies also do not outperform each other, and many blockchain networks are exploring combinations of layer-1 and layer-2 scaling solutions on blockchains to achieve increased scalability without compromising security or adequate decentralization.
🔅 $QTUM, Part of Next Bullrun⁉️
#Qtum is a decentralized, independent public blockchain platform that combines the security of #Bitcoin’s blockchain model and the flexibility of #Ethereum’s smart contracts, created in 2017.
Patrick Dai and his Dev team have always been active but always discreet. They are the complete opposite of "speculation tokens" which will spend a large portion of their budget on advertising to increase their token price. No marketing for #Qtum that seems to do not care about their token price and prefers to invest in their project development, company, salaries, etc. Note that 97% of the supply is in circulation and that there are many wallets with large volumes that never sell until now.
@AlainBKK 24-Jan-2023
#Qtum is a decentralized, independent public blockchain platform that combines the security of #Bitcoin’s blockchain model and the flexibility of #Ethereum’s smart contracts, created in 2017.
Patrick Dai and his Dev team have always been active but always discreet. They are the complete opposite of "speculation tokens" which will spend a large portion of their budget on advertising to increase their token price. No marketing for #Qtum that seems to do not care about their token price and prefers to invest in their project development, company, salaries, etc. Note that 97% of the supply is in circulation and that there are many wallets with large volumes that never sell until now.
@AlainBKK 24-Jan-2023
✅ (1/2) The Singaporean Sleeping Giant⁉️
🔹 Patrick Dai and his Dev team are among those very active but discreet projects, without extravagant marketing or airdrop to attract new investors. However, since June, they have been communicating a lot on their Twitter account about the QRC20 Smart Token (same as ERC20).
🔹 #Qtum is an open source public blockchain platform built on a peer-to-peer #PoS network. It uses the transaction model of #BTC, with the added flexibility of smart contracts. The project provides a range of resources for developing blockchain and decentralized applications, as well as a multi-wallet ecosystem.
🔹 Quantum Blockchain Network hosts 280 different tokens and has nearly 3 million addresses. https://qtum.info
🔹 Patrick Dai and his Dev team are among those very active but discreet projects, without extravagant marketing or airdrop to attract new investors. However, since June, they have been communicating a lot on their Twitter account about the QRC20 Smart Token (same as ERC20).
🔹 #Qtum is an open source public blockchain platform built on a peer-to-peer #PoS network. It uses the transaction model of #BTC, with the added flexibility of smart contracts. The project provides a range of resources for developing blockchain and decentralized applications, as well as a multi-wallet ecosystem.
🔹 Quantum Blockchain Network hosts 280 different tokens and has nearly 3 million addresses. https://qtum.info