What Specific Blockchain Architectures (E.g. Layer 2 Solutions) Are Best Suited to Handle the High Throughput Required for Derivatives Trading?

Layer 2 scaling solutions are best suited for the high throughput demands of derivatives trading. Rollups, both Optimistic and ZK-Rollups, are particularly promising as they bundle multiple transactions off-chain and submit a single proof to the main chain, drastically increasing transaction speed and reducing costs.

State channels allow parties to conduct numerous transactions off-chain, only settling the final state on the main chain, which is ideal for high-frequency trading between two parties. These architectures provide the necessary scalability while still leveraging the security of the underlying Layer 1 blockchain.