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Layer 1 (layer 1 - l1) and layer 2 (layer 2 - l2) are two different techniques used to solve the scalability problem of blockchain technology. Within the blockchain trilemma (decentralization, security, and scalability), these techniques are primarily used to increase scalability and improve transaction speed and throughput.

1. Layer 1 Blockchain Solutions

Layer 1 refers to the core or fundamental blockchain network, such as ethereum, bitcoin, solana, or cardano. These solutions attempt to solve the scalability problem by directly modifying the protocol of the main chain. The fundamental foundation is the blockchain where transactions are ultimately recorded securely and immutably. L1 networks maintain their own security and consensus (e.g. Proof-of-Work or Proof-of-Stake). The primary focus of L1 is to maintain decentralization and security.

L1 Strategy for Scalability

StrategyDescriptionExampleConsensus ChangeMoving from Proof-of-Work (PoW) to Proof-of-Stake (PoS), which speeds up transactions and reduces energy consumption.Ethereum (transition from PoW to PoS via "The Merge").ShardingDividing the blockchain database into small, parallel parts (shards), with each part processing a small subset of the data, thereby increasing throughput.Sharding is a goal of the future roadmap for Ethereum 2.0.Block Size IncreaseIncreasing the data capacity of a block to allow for more transactions per block.Bitcoin Cash.

2. Layer 2 Blockchain Solutions

Layer 2 is a set of off-chain protocols or infrastructure that builds on top of the security of the L1 blockchain. The goal of L2 is to take the burden of transactions off the main chain while maintaining the security and decentralization of L1. L2 relies on L1 to maintain its consensus or security. Data processed in L2 is ultimately submitted to L1. L2 has much faster transaction processing speeds and lower gas fees than L1. L2’s primary focus is on increasing scalability and efficiency.

L2 Main Strategies or Solutions

L2 StrategiesProcessesExamplesRollupsProcess thousands of transactions off-chain and submit their short cryptographic proofs as a single transaction to L1.Arbitrum, Optimism (Optimistic Rollups).Zero-Knowledge RollupsA more advanced approach, where Zero-Knowledge Proof (ZK-SNARKs) of the transaction's validity are submitted to L1. This ensures fast finality.zkSync, Polygon zkEVM.SidechainsIndependent blockchains bidirectionally connected to L1 that use their own consensus mechanism (but not as robust as L1).Polygon PoS (works somewhat like L2, but has its own security model).Payment ChannelsEstablishing an off-chain communication channel between two parties, where only the opening and closing of the channel are recorded in L1.Bitcoin's Lightning Network.

3. Synergy

L1 and L2 solutions are not competitors, but rather complementary. L1 acts as the Settlement Layer and the Trust Layer. The main function of L1 is to provide the main guarantee of security and decentralization. L2 acts as the Execution Layer. L2 reduces the pressure on the main chain and creates a fast, cheap and user-friendly environment for applications. This integrated approach is preparing the blockchain for mass use, where L1 provides security and L2 ensures scalability. Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well