Forwarded from AlanBKK
🚩#DIA (last news) is integrating with the #xDaiChain, to offer its #Oracle infrastructure in the #Ethereum compatible blockchain for fast and inexpensive transactions. (Rank #395)
👉 #DIABTC Take-Profit Targets:
▫️ Buying Entry on 15/08: 430-460 Sat
🔹 TP1: 520
🔹 TP2: 640
🔹 TP3: 780
🔹 TP4: 955
👉 #DIABTC Take-Profit Targets:
▫️ Buying Entry on 15/08: 430-460 Sat
🔹 TP1: 520
🔹 TP2: 640
🔹 TP3: 780
🔹 TP4: 955
✨Layer-1 & Layer-2 Blockchain Scaling Solutions
For blockchains to compete with legacy payments processors, they need to be able to process high volumes of transactions quickly, at a low cost.
▫️Why is Scalability Important?
The main goal of scalability is to increase transaction speed (faster finality) and transaction throughput (higher transactions per second) without sacrificing decentralization or security.
▫️There are 2 primary ways to achieve blockchain scalability: Layer-1 & Layer-2 Solutions. 👇👇
1️⃣ LAYER-1
It's a network that acts as infrastructure for other applications, protocols, and networks to build on top of. A public decentralized layer-1 network's primary characteristic is its consensus mechanism.
🔹#Bitcoin
🔹#LItecoin
🔹#Algorand
🔹#Cardano
🔹#Hedera
🔹#Solana
🔹#Ethereum 2.0 is one high-profile blockchain protocol that is exploring shards, along with #Zilliqa, #Tezos, and #Qtum.
2️⃣ LAYER-2
It refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major crypto networks.
🔹#Polygon
🔹#Arbitrum
🔹#Loopring
🔹#ImmutableX
🔹#xDaiChain
▫️Layer-1 vs Layer-2 Key Differences
The main difference between layer-1 vs layer-2 scalability solutions lies in their role and focus on the blockchain. 👇👇👇
🔅Layer-1 is here to improve the blockchain architecture, while layer-2 is here to build third-party networks on top of the main blockchain.
🔅Layer-1 can provide the most effective solution in large-scale protocol upgrades. However, using this method also means that the validator must be convinced to accept changes via a hard fork.
🔅Layer-2 provides a faster way to increase scalability. However, users can potentially lose the level of security of the original blockchain due to the use of third parties.
▫️Conclusion
👉🏻Layer-1 and layer-2 are just two sides of the same scaling solution. Therefore, they have a strategy designed to make the blockchain network faster and more accommodating for a rapidly growing user base.
👉🏻These strategies also do not outperform each other, and many blockchain networks are exploring combinations of layer-1 and layer-2 scaling solutions on blockchains to achieve increased scalability without compromising security or adequate decentralization.
For blockchains to compete with legacy payments processors, they need to be able to process high volumes of transactions quickly, at a low cost.
▫️Why is Scalability Important?
The main goal of scalability is to increase transaction speed (faster finality) and transaction throughput (higher transactions per second) without sacrificing decentralization or security.
▫️There are 2 primary ways to achieve blockchain scalability: Layer-1 & Layer-2 Solutions. 👇👇
1️⃣ LAYER-1
It's a network that acts as infrastructure for other applications, protocols, and networks to build on top of. A public decentralized layer-1 network's primary characteristic is its consensus mechanism.
🔹#Bitcoin
🔹#LItecoin
🔹#Algorand
🔹#Cardano
🔹#Hedera
🔹#Solana
🔹#Ethereum 2.0 is one high-profile blockchain protocol that is exploring shards, along with #Zilliqa, #Tezos, and #Qtum.
2️⃣ LAYER-2
It refers to a secondary framework or protocol that is built on top of an existing blockchain system. The main goal of these protocols is to solve the transaction speed and scaling difficulties that are being faced by the major crypto networks.
🔹#Polygon
🔹#Arbitrum
🔹#Loopring
🔹#ImmutableX
🔹#xDaiChain
▫️Layer-1 vs Layer-2 Key Differences
The main difference between layer-1 vs layer-2 scalability solutions lies in their role and focus on the blockchain. 👇👇👇
🔅Layer-1 is here to improve the blockchain architecture, while layer-2 is here to build third-party networks on top of the main blockchain.
🔅Layer-1 can provide the most effective solution in large-scale protocol upgrades. However, using this method also means that the validator must be convinced to accept changes via a hard fork.
🔅Layer-2 provides a faster way to increase scalability. However, users can potentially lose the level of security of the original blockchain due to the use of third parties.
▫️Conclusion
👉🏻Layer-1 and layer-2 are just two sides of the same scaling solution. Therefore, they have a strategy designed to make the blockchain network faster and more accommodating for a rapidly growing user base.
👉🏻These strategies also do not outperform each other, and many blockchain networks are exploring combinations of layer-1 and layer-2 scaling solutions on blockchains to achieve increased scalability without compromising security or adequate decentralization.