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Layer 1 (L1) and Layer 2 (L2) blockchain solutions are two essential approaches to solving the scalability trilemma of blockchain technology. A fundamental challenge of blockchain technology is the ability to process a large number of transactions quickly without compromising security and decentralization. L1 and L2 work at different levels to achieve this goal.

1. Layer 1 Blockchain

Layer 1 is the basic foundation or core protocol of a blockchain network. Networks such as Bitcoin, Ethereum (after PoS), Solana, and Cardano are examples of L1 blockchains. L1 solutions attempt to increase the functionality of the network by directly modifying the code of the main chain. Transactions are recorded permanently and securely in L1. This can be called the final settlement layer. L1 networks maintain security and decentralization by using their own consensus mechanism (such as Proof-of-Work or Proof-of-Stake). The main goal of L1 is to ensure maximum security and decentralization.

L1 Scalability Strategy

StrategyDescriptionExampleConsensus ChangeTransition from PoW to PoS. PoS reduces power consumption and makes transactions faster.Ethereum (via The Merge).ShardingDividing the blockchain database into smaller, parallel parts. Each part processes a smaller subset of the data, thereby increasing throughput.Future roadmap for Ethereum 2.0.Block Size ChangeIncreasing the data holding capacity of a block to fit more transactions into each block.Bitcoin Cash.

2. Layer 2 Blockchain

Layer 2 is a set of off-chain protocols that are built on top of the security of the L1 blockchain. The goal of L2 is to take the burden of transactions off the main chain, so that L1 only has to perform security and settlement functions. All transactions that occur on L2 are ultimately submitted to L1 and are verified by L1's security protocols. Transaction processing speed on L2 is much faster and gas fees are much lower than on L1. L2 acts as an execution layer for applications and users.

Main techniques and types of L2

L2 techniquesProcessMain advantagesExamplesOptimistic rollupsTransactions are assumed to be valid (optimistic) off-chain. If no one proves invalidity (within a certain time frame), it is finalized in l1.High throughput and compatibility with evm.arbitrum, optimism.Zero-knowledge rollups (zk-rollups)Process transactions off-chain and submit a cryptographic proof (zk-proof) of their validity to l1. The proof is verified instantly in l1.Faster finality and high security.zksync, starknet, polygon zkevm.SidechainsIndependent blockchains bidirectionally connected to l1. They use their own consensus.Operate at much lower fees than l1.polygon pos (often considered l2 but with a slightly different security model).Payment channelsEstablish an off-chain transaction channel between two parties. Only channel opening and closing transactions are recorded in l1.Suitable for small and fast transactions.Bitcoin's lightning network.

3. Integrated role

L1 and L2 solutions are not competitors to each other, but jointly solve the blockchain trilemma (security, decentralization and scalability).

L1 = Security ensurer : L1 handles the heavy lifting (security and data settlement).

L2 = Performance enhancer : L2 reduces the pressure and congestion of transaction processing, which makes the network faster and cheaper. This integrated structure is paving the way for blockchain technology to be useful to billions of users. 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