As the adoption of blockchain accelerates, scalability becomes the most pressing challenge of the ecosystem. With the explosion of decentralized applications (dApps), smart contracts, and high transaction volumes, blockchains must be optimized to meet global demand. Two main approaches that stand out in addressing this issue are Layer-1 and Layer-2 scaling solutions.
Layer-1 (L1) is the foundational layer of a blockchain like Bitcoin or Ethereum, while Layer-2 (L2) consists of protocols built on top of Layer-1 to enhance throughput, reduce costs, and alleviate network congestion. This article analyzes the roles of both layers in the future of blockchain architecture.
Layer-1 scaling solutions
Layer-1 scaling includes direct improvements to the core blockchain protocol to enhance performance and capacity. Operations may include adjusting consensus mechanisms, increasing block size, or applying technologies such as sharding. Some representative Layer-1 blockchains include:
Cardano, Solana, Avalanche: Competing chains at Layer-1 with available optimal designs.
Bitcoin: Prioritizes decentralization and security but is limited in throughput.
Ethereum: Transitioning from Proof-of-Work (PoW) to Proof-of-Stake (PoS) enhances scalability and energy savings.
Layer-1 scaling solutions impact the network foundation to enhance scalability. This opens up various ways to increase processing throughput of blockchains.
Typically, Layer-1 allows for direct modification of protocol rules to increase transaction capacity and reduce latency. At the same time, this solution helps to enhance data storage capacity and serve a larger user base.
Layer-1 scaling techniques
Adjusting block size and time: Increasing block size and shortening block creation time increases TPS but may affect the level of decentralization.
Improving consensus mechanisms: Transitioning from PoW to PoS reduces energy consumption and facilitates faster confirmations.
Sharding: Dividing the network state into smaller 'fragments' for parallel processing, as Ethereum 2.0, Polkadot, and Zilliqa are applying.
Advantages
Scaling network performance is the biggest advantage of Layer-1, requiring protocol upgrades to increase scale.
Layer-1 provides decentralization and security while ensuring scalability and economic sustainability.
Supports the development of the ecosystem, integrating advanced tools and new features into the core protocol.
Disadvantages
Requires hard forks or complex protocol upgrades.
The deployment process is slow due to complexities in governance and community coordination.
Many current Layer-1 networks struggle to scale. Bitcoin and other large blockchains have difficulty processing transactions when load increases. The PoW mechanism consumes significant computational resources leading to productivity limits.
Overcoming Layer-1 limitations
Despite upgrades, Layer-1 still faces limitations in scalability. For example, Bitcoin's PoW mechanism limits throughput, and Ethereum has experienced high gas fees during peak times. Two prominent solutions are:
Proof-of-Stake (PoS): Replacing miners with validators staking Tokens, as applied by Ethereum, Cardano, Tezos.
Sharding: Dividing the blockchain into chunks for parallel processing to increase throughput.
These solutions aim to address the 'blockchain trilemma': balancing scalability, decentralization, and security.
Improvement of consensus mechanisms
PoW is a popular consensus protocol but is slow and energy-intensive. PoS is commonly chosen for new blockchains due to its efficiency, increasing processing capacity while maintaining high levels of decentralization and security.
Sharding
Transitioning from distributed database technology, sharding divides the blockchain state into smaller 'chunks' for parallel processing, enhancing transaction throughput. Each node only manages one chunk, not needing to store the entire chain, thereby alleviating the load on the main network. Ethereum 2.0, Zilliqa, Polkadot are notable examples using this technique.
Layer-2 scaling solutions
Layer-2 consists of technologies that sit on Layer-1, improving scalability without changing the original protocol. Transactions are processed off-chain, and the final results are recorded on the core blockchain, reducing pressure on the main network.
The goal of Layer-2 is to leverage networks or solutions that operate externally to enhance efficiency and scalability for the blockchain. This allows for rapid and flexible data processing without causing congestion on the main platform.
Prominent Layer-2 protocols include:
zkSync, Starknet: Use zk-rollups to bundle thousands of transactions with cryptographic proofs.
Lightning Network (Bitcoin): A payment channel that enables near-instant microtransactions.
Optimism & Arbitrum (Ethereum): Optimistic rollups that scale Ethereum without reducing security.
Advantages
Does not diminish the performance or functionality of the underlying blockchain, maintaining stable network performance.
Helps execute a large number of small transactions quickly without repeat verification or excessive fees.
Disadvantages
Layer-2 negatively affects the connectivity between blockchains: As it only operates within specific protocols, users are limited in cross-chain interaction.
Safety and privacy issues: The security of Layer-2 cannot match that of main chains, requiring consideration of priorities for each case.
Types of Layer-2 solutions
Layer-2 includes forms such as nested blockchains, state channels, sidechains,… which help to scale effectively.
Advantages Disadvantages Reduces congestion Layer-1 Security depends on architecture Low microtransaction fees Easily fragments liquidity or users Fast transaction confirmations Must trust validators or external bridges
Rollups
Rollups aggregate multiple transactions into a single proof sent to Layer-1. The two popular types of rollup are Zero-Knowledge (ZK) and Optimistic Rollups. ZK-rollup verifies cryptographic proofs to ensure fast authenticity and high security. Optimistic rollup assumes transactions are valid, only verifying when 'fraud proof' is claimed within a certain time frame.
Nested blockchains
Nested blockchains are blockchains that reside on the main chain, dividing computation among child chains to relieve the load on the parent network. The main network only intervenes in disputes. This model significantly expands processing capabilities. OMG Plasma is a notable example applied in Ethereum Layer-2.
State channels
State channels allow for bidirectional communication between the blockchain and off-chain transaction channels, helping to increase speed and transaction volume. Transactions are only recorded on the blockchain at the end of the transaction session. Bitcoin's Lightning Network, Ethereum's Raiden Network, and Celer are notable examples.
Sidechains
Sidechains are parallel chains to the main blockchain, used for high-volume transactions. Sidechains have independent consensus mechanisms, often optimized for performance and scalability. However, the security of the sidechain does not affect the main blockchain. Projects building sidechains often require substantial resources from the start.
The blockchain trilemma
What is the difference between Layer-1 and Layer-2? - Bitcoin News - 24/7 Latest Coin News Update 2025
The trilemma refers to the ability to balance three factors: security, decentralization, and scalability – the three core principles of blockchain.
Accordingly, a blockchain can only optimize two out of three characteristics and cannot possess all three simultaneously. Therefore, current blockchain technology must always trade off one characteristic to maintain operation. For example, Bitcoin prioritizes security and decentralization but limits scalability.
Currently, no blockchain has perfected a comprehensive solution for this trilemma. However, Layer-1 and Layer-2 continuously innovate to push technical limits.
The main difference between Layer-1 and Layer-2
What is the difference between Layer-1 and Layer-2? - Bitcoin News - 24/7 Latest Coin News Update 2025
The basic structure of both shows a clear distinction. Here are the key differences:
1. Definition
Layer-1 is the solution that directly intervenes in the core protocol layer of the blockchain, such as adjusting block size or consensus mechanisms. Layer-2 is a system operating outside the main chain to share the processing burden, completing tasks and then returning results to the network.
2. How it works
Layer-1 changes core protocols, thus reversing when reducing transaction loads can be difficult. In contrast, Layer-2 operates independently off-chain, only reporting results to Layer-1, thus can flexibly tighten or loosen as needed.
3. Types of solutions
Layer-1 includes consensus upgrades, sharding, and block size/time adjustments. Layer-2 is almost limitless in the types of solutions, which can be any protocol, network, or independent application that helps scale off-chain.
4. Quality and functionality
Layer-1 networks are the ultimate source of validation, using native Tokens to access network resources, and continuously improving consensus mechanisms. Layer-2 adds throughput capabilities, programmability, and reduces transaction costs but requires interaction mechanisms that align with Layer-1.
The future of blockchain scaling
Both Layer-1 and Layer-2 play crucial roles in scaling blockchains. Layer-1 focuses on the foundation and protocol changes, while Layer-2 provides practical improvements in scalability without overloading the main network.
Understanding how these two layers interact helps developers build applications and investors assess the network expansion roadmap comprehensively.
Source: https://tintucbitcoin.com/su-khac-biet-giua-layer-1-va-layer-2-la-gi/
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