1. Goal of scalability
- Reduce the cost of using the network (blockchain has reached certain capacity limitations).
- Increase transaction speed (faster finality), and transaction throughput (high transactions per second), without sacrificing decentralization or security.
2. Two main solution to scale Ethereum blockchain
👉 ON-CHAIN SCALING (Sharding):
- Requires changes to the Ethereum protocol (Mainnet - layer 1).
- Splitting the blockchain into discrete pieces (shards) to be verified by subsets of validators.
👉 OFF-CHAIN SCALING:
- Layer 2 scaling: derives its security and handling transactions off from Mainnet Ethereum, centered around a server or cluster of servers (referred to as a node, validator...) Transactions are rolled up into a single transaction to Mainnet Ethereum. it's two types of rollups with different security models: Optimistic rollups and Zero-knowledge rollups.
- State channels: use multisig contracts to enable participants to transact quickly and freely off-chain, then settle finality with Mainnet.
- Sidechains: an independent EVM-compatible blockchain which runs in parallel to Mainnet, compatible with Ethereum via two-way bridges, run under their own chosen rules of consensus, and block parameters.
- Plasma: is a separate blockchain that is anchored to the main Ethereum chain uses fraud proofs.
- Validium: uses validity proofs like zero-knowledge rollups but data is not stored on the main layer 1 Ethereum chain.
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