Ethereum Layer 2 Scaling Solutions Demystified

Sidechains, Optimistic and ZK Rollups, Channels, and more.

Notable Ethereum layer 2 scaling solutions

Table of Contents:
· #1 — Sidechains
  ∘ Example Project: Polygon
· #2 — Channels
  ∘ Example Project: Celer Network
· #3 — Rollups
  ∘ Optimistic Rollup
  ∘ Example Project 1: Optimism
  ∘ Example Project 2: Arbitrum
  ∘ ZK Rollup
  ∘ Example Project: LoopRing
· List of Some Ethereum Layer 2 Scaling Solutions
· Final Thoughts

Scalability is one of the main concerns in Ethereum blockchain development. A scalable blockchain can handle thousands of transactions simultaneously. Moreover, the transaction fee for such a network should not be too high.

Due to the high number of dApps and use-cases built on top of Ethereum, we often experience a high level of network activity. This indeed causes network congestion and extremely high gas fees. Therefore, the Ethereum blockchain needs scaling solutions.

Ethereum Average Gas Price Chart

ETH 2.0 will address part of the scalability-related issues mainly by introducing sharding mechanisms.