Layer 1 in a decentralized ecosystem is the blockchain. Layer 2, on the other hand, is a third-party integration combined with Layer 1 to increase the number of nodes, and subsequently, system throughput.
In blockchain technology, the term “scaling” refers to an increment in the system throughput rate, as measured by the number of transactions performed per second. With the increasingly prevalent use of cryptocurrencies in everyday life, it has now become necessary to create blockchain layers for better network security, recordkeeping, and more.
In Layer 1 scaling, the underlying blockchain protocol is changed to make scalability possible. With these solutions, the protocol’s rules are changed to increase the capacity and transaction speed, thus accommodating more data and users.
Layer 1 scaling could be:
Together, these scaling solutions increase the network’s throughput. However, Layer 1 seems to be falling short with the rising number of blockchain users. Following are some incompetencies of the system.
Layer 1 blockchain still uses the old and clunky proof-of-work consensus mechanism.