Scalability and Layer 2

9 min readarticleIncludes quiz · 5 questions

Bitcoin processes about 7 transactions per second. How can it scale to serve billions? Through clever engineering and layer 2 solutions.

The Scalability Trilemma:

Blockchains must balance:

  • Scalability: Transaction throughput
  • Security: Resistance to attacks
  • Decentralization: Number of validators

Improving one often compromises the others.

Lightning Network Deep Dive
Lightning Network Deep Dive

Layer 2 Solutions:

Lightning Network:

  • Payment channels between users
  • Instant transactions
  • Minimal fees
  • Millions of TPS possible
  • Final settlement on Bitcoin

Sidechains:

  • Separate blockchains pegged to Bitcoin
  • Different rules and features
  • Liquid Network example

Test Your Knowledge

This lesson includes a 5-question quiz (passing score: 75%).

Quiz functionality available in the mobile app.