Ethereum (ETH) can currently only process 15 transactions per second. Although this problem is to be solved by ETH 2.0, experts suspect that it will not be expected until the end of 2022. That is why ETH developers are working on other so-called Layer 2 scaling solutions.
Today we take a look at the four most promising approaches
The scaling of Ethereum is one of the most discussed topics in the crypto space. Since the start of the Ethereum network, developers have been working on possible solutions. Whenever there are periods of heavy network traffic, the scaling debate heats up again. One of these types was the ICO boom and the emergence of the CryptoKitties in 2017. At that time, the hype overloaded the entire ETH network. As in the last few days and weeks, transactions could only be carried out with extremely high fees.
At the moment, the ETH blockchain is being pushed to its limits primarily through decentralized finance (DeFi) applications. But what solutions are there for this problem?
When it comes to scaling blockchain in general, there are basically two options. On the one hand, the scaling of the so-called base layer, i.e. the main chain of a blockchain network, or the scaling of the network by outsourcing part of the transactions to a layer 2.
But what exactly are Ethereum Layer 2 scaling solutions all about? What different approaches are there and when can an implementation be expected?
4. Channels: Scaling of individual ETH transactions
Channels are one of the first ideas that came up to scale ETH. They are comparable to the Bitcoin Lightning network. Channels allow participants to carry out almost any number of transactions off-chain, while all they have to do is transmit the end result to the main chain. This scaling solution can easily perform several thousand transactions per second.