How Do 'Sidechains' and 'Layer 2' Solutions Attempt to Mitigate PoW Scalability Issues? ▴ Learn

How Do ‘Sidechains’ and ‘Layer 2’ Solutions Attempt to Mitigate PoW Scalability Issues?

Sidechains and Layer 2 solutions, like rollups or payment channels, move the bulk of transaction processing off the main PoW blockchain. The main chain is only used for final settlement and security.

This drastically increases the overall transaction throughput and speed of the network without requiring a change to the core PoW consensus mechanism, thus mitigating the scalability limitations of the main chain.

How Do ‘Layer 2’ Solutions Address PoW Scalability Issues?

What Is the Primary Scalability Challenge That Layer-2 Solutions Address?

How Do Layer 2 Scaling Solutions Attempt to Mitigate High Transaction Fee Variability?

How Do Sidechains Differ from Layer 2 Rollups in Their Security Model?