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Blockchain technology is shaping a transformative way to enable a decentralized and scalable method for facilitating economic activities. Scalability refers to the ability of a blockchain network to process a high number of transactions and at the same time store data without affecting its production and speed.
For instance, in this dynamic landscape of blockchain technology, one of the compelling challenges facing popular platforms like Bitcoin and Ethereum is scalability. As Bitcoin and Ethereum struggle to grasp a lofty number of transactions, there have emerged various suggestions for improving the scalability solutions such as Second-Layer solutions namely Lighting Network and Raiden.
Understanding Second-Layer Solutions
Second-Layer Solutions are contemporary protocols that are mapped out in a way that they can operate on top of another blockchain network. This Second-Layer is designed in a very different way from Layer1 which results in a protocol that can utilize the benefits of two different protocols. Second-layer solutions offer security and decentralization and address the scalability demerits of blockchain networks. These protocols achieve this through high-speed transactions which enables it to handle more users.
Some examples of Second-Layer Solutions include
a.Celer Network
This is a platform designed in a way to provide fast and scalable blockchain applications. It provides comprehensive tools which help to facilitate the adoption of its technology.
b.Plasma
Plasma is a structure that enables faster and more efficient transaction processing. This is because of its scalable and secure smart contracts platforms. It is designed in a way that will take on the scalability challenges of the Ethereum blockchain and other related programs.
c.Roll-ups
This is a Layer 2 protocol that executes data transactions without relying on the base layer. They also transfer records of transactions at some regular interlude mainly for documentation purposes. Roll ups have 2 main types which include the ZK-Rollups and Optimistic Roll ups.
Lightning Network
Lightning Network is designed in a way that enhances Bitcoin’s scalability fast enabling transactions.
This Network is secured by smart contracts which helps it maintain the trust and the decentralized nature of the Bitcoin network. Lightning Network also creates channels between users enabling it to conduct an unlimited number of transactions. It also boosts the privacy of its users since most of its transactions occur away from the main source hence reducing the risk of bugging.
Raiden Network
Raiden Network is just like the Lightning Network, It is designed in a way that enables it to produce fast and low-cost transactions. Raiden has several advantages which include adding an extra layer of privacy to participants’ transactions, among others.
By supporting these state channels, Raiden Network helps reduce congestion on the Ethereum network hence enabling faster transactions. It is also important in some applications such as gaming and decentralized finance(DEFi) activities. It addresses scalability challenges in Ethereum making it a remarkable event in the rise of blockchain technology.
How Raiden Network Operates
- First, set up a payment passage
- Conduct Off-Chain Transactions,
- Update the channel state,
- Closure of the Transaction,
- Handle misunderstanding,
- network payments Transactions,
Bottom Line
The growth of Second-Layer solutions is showing an exciting phase in the evolution of blockchain technology. Also, the Lightning Network and Raiden are creating the way for a more efficient and viable future. With these second-layer solutions, there is an approach to address the scalability challenges faced by blockchain networks. Each solution will help in providing a distinctive merit and contributing a lot to the underway advancement of blockchain technology.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
