August 12, 2020, 12:53PM EDT
• 12 min read
Scaling blockchains with Layer 2 technologies
- The limited scalability of Ethereum has led to rising transaction fees. Users often pay ~$50 for standard interactions with many popular smart contracts.
- Scaling transaction throughput on blockchains is challenging because transactions must be processed by every node participating in consensus.
- The most promising Layer 2 scaling solutions are ZK Rollups and Optimistic Rollups, which have been developed to address the weaknesses of previous Plasma implementations.