August 12, 2020, 12:53PM EDT
• 12 min read

Scaling blockchains with Layer 2 technologies

Quick Take

  • 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.

Join The Block Research for exclusive research like this

Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.

Already a Research Member? Login Here