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Trishla Tyagi
Dec 17, 2021
by Trishla Tyagi

Nischal Shetty On a variety of Blockchain Layer solutions

scaling Nischal Shetty WazirX
Around L1 scaling, there are two schools of thought: L1s will scale with improved architecture and will be the most widely utilized.L1s will be able to scale with the support of L2. Both of these ideas are being worked on by the crypto industry. In the end, real decentralization will triumph. That what Nischal Shetty’s opinion on scaling solutions. The most significant impediment to cryptocurrency acceptance in the mainstream is scalability. We need protocols that have been created particularly to handle this challenge in order to ensure that cryptocurrencies are scalable and quick enough for day-to-day transactions. This is why initiatives like Algorand are so important, and we can only hope that additional projects will follow in their footsteps and give a realistic answer.

The term "layer-1" is used to define the primary blockchain architecture. On the other side, Layer-2 is an overlaying network that sits on top of the blockchain. Take, for example, Bitcoin and the Lightning Network. The bitcoin network is a layer-1 network, whereas the lightning network is a layer-2 network.

The two most prevalent layer-1 solutions.

  • Sharding: Sharding is a common layer-1 scalability solution that is presently being worked on by a number of projects. Instead of forcing a network to work on each and every transaction in a sequential manner, sharding divides large transaction sets into smaller data sets known as "shards." The network may then handle these shards in parallel.

    • Consensus protocol change: Many projects, such as Ethereum, are switching from slower and less wasteful Proof-of-Work (PoW) consensus methods to quicker and less wasteful Proof-of-Stake protocols (PoS). Both Bitcoin and Ethereum employ PoW, in which miners use their computing power to solve cryptographically difficult equations. While PoW is quite secure, it has the disadvantage of being sluggish. On a good day, Bitcoin can only handle 7 transactions per second, whereas Ethereum can only handle 15–20. This is why Ethereum is considering switching from PoW to PoS. (via the Casper protocol).

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      sharding Algorand Nischal Shetty proof-of-work (PoW) mechanism Blockchain scalability Blockchain Layer solutions Consensus protocol change
      Nischal Shetty On a variety of Blockchain Layer solutions
      Trishla Tyagi
      Trishla is a crypto writer and social media aficionado. She has substantial experience in covering updates, events, and news related to the crypto space, along with rapidly expanding blockchain and financial technology markets. Her experience in the cryptocurrency market has led her to become a crypto hodler herself.

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