What Scaling Solutions Aim to Reduce the Impact of Network Congestion on Fees? ⎊ Path

What Scaling Solutions Aim to Reduce the Impact of Network Congestion on Fees?

Scaling solutions, broadly categorized as Layer 2 (L2) and Layer 1 (L1) upgrades, aim to increase transaction throughput. L2 solutions like Rollups (Optimistic and ZK) process transactions off-chain and submit proof to the L1, drastically reducing the cost per transaction.

L1 upgrades, such as sharding, increase the base capacity of the main chain. Both methods reduce competition for the limited block space, thereby lowering fees.

What Is the “Data Availability” Problem in the Context of Layer 2 Scaling?

How Do SegWit and Other Scaling Solutions Aim to Reduce Transaction Fees?

What Is the Primary Difference between Optimistic Rollups and ZK-Rollups?

How Have Layer-2 Solutions like the Lightning Network Expanded the Capabilities of Bitcoin despite Its Non-Turing-Complete Base Layer?

What Is the Concept of “Sharding” in Blockchain Architecture?

How Does ‘Sharding’ Address the Block Size Limitation Problem?

What Is the Fundamental Difference between an Optimistic Rollup and a ZK-Rollup?

How Does Sharding Compare to Layer 2 Solutions in Addressing Blockchain Scalability?