Blockchain scaling solutions and major Layer 2 network solutions

There are more than thirty known off-chain scaling schemes ……

In recent years, a variety of solutions have been proposed by technical developers and project teams. These solutions can be divided into two main categories: on-chain scaling and off-chain scaling.

On-chain scaling is “surgery” directly on the blockchain – modifying the rules, including block size, consensus mechanisms, and so on. For example, the block size of the Bitcoin blockchain will be expanded directly from 1M to 32M, 128M or even 2G (this is the difference in block size between BTC, BCH and BSV), and then there is the highly anticipated technology solution that will be used in “Ether 2.0” –Sharding.

Off-chain scaling refers to the creation of a second layer of transaction network outside the main chain, hence the term “Layer 2”.

If we compare on-chain expansion to road widening, then off-chain expansion is to build new viaducts, tunnels, paths and so on.

The current off-chain scaling solutions can be divided into three main categories: one is for scaling payments, such as the lightning network on Bitcoin; one is for scaling smart contracts; and one is for off-chain computing.

So, what are some of the relatively well-known off-chain scaling solutions?

Without a doubt, the most widely known off-chain scaling solution is Bitcoin’s Lightning Network, which was published as a “white paper” on January 14, 2016, and subsequently developed and tested by a large number of developers. In January 2017, the first implementation of the Lightning Network, lnd, was released in Alpha, and in the summer of 2017, the groundwork for the Bitcoin Lightning Network was completed. As of today, the Lightning Network has a total of 10,423 nodes, 34780 channels, and 821.1 BTC locked up.

Blockchain scaling solutions and major Layer 2 network solutions

2019.11.14 Current state of the Bitcoin Lightning Network, source: 1ML

Of course, the current lightning network is also still in the development stage and is not particularly mature. in March 2018, the lightning network nodes suffered a DDOS attack, resulting in about 200 nodes offline.

Similar to the Bitcoin Lightning Network is the Raiden Network, an off-chain scaling solution on ethereum. The Raiden Network supports instant transfers, low cost, scalability, and privacy protection, but the underlying protocol is quite complex and not easy to implement.

Liquidity Network is a competitor to Raiden Network. Its main purpose is to transfer transactions from Ether to payment channels. Like Bitcoin’s Lightning Network, Liquidity Network’s users are able to make transactions back and forth, paying no fees in the process, only a fee when opening and closing the channel.

While the above are all payment extensions in off-chain expansion, Plasma, a layered sidechain, is a smart contract extension, co-written by developer Joseph Poon and Vitalik Buterin, the founder of Ether, with the main goal of moving a lot of smart contract calculations to the sidechain rather than executing them on the main Ether chain. The main goal is to move a lot of smart contract calculations to the sidechain, rather than executing them on the main Ether chain.

Celer Network is also a high-profile off-chain scaling solution. Its main goal is to build a common network system that runs on top of existing and future blockchains, allowing everyone to quickly build, operate and use highly scalable DApps.

To date, there are more than thirty known off-chain scaling solutions, but they are all in the early stages of development. Time has yet to tell which scaling solutions will be the first to mature and help existing public chains solve their scalability problems.

Which type of scaling solution do you prefer, on-chain or off-chain scaling? Why? Feel free to share your views in the comments section.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/blockchain-scaling-solutions-and-major-layer-2-network-solutions/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-25 03:00
Next 2021-06-25 03:07

Related articles