Handling more transactions.
WHAT THE CONSTRAINT IS
Every node validating everything limits throughput.
WHAT INCREASING BLOCK SIZE DOES
Raises throughput, and raises the cost of running a node.
WHY THAT MATTERS
Fewer nodes means less decentralisation.
WHAT LAYER TWO MEANS
Processing away from the main chain, settling on it.
WHAT PAYMENT CHANNELS PROVIDE
Two parties transacting repeatedly off-chain, settling the net result.
WHAT ROLLUPS DO
Batch many transactions, publish compressed data, and prove validity on the main chain.
WHAT THE TWO ROLLUP FAMILIES ARE
Optimistic: assumed valid, with a challenge period
Validity-proof based: proven valid mathematically
WHAT THE TRADE-OFF IS
Challenge periods delay withdrawal; proofs are computationally expensive to produce.
WHAT SHARDING DOES
Divides the network so nodes validate a portion rather than everything.
WHAT IT COMPLICATES
Transactions spanning shards.
WHAT SIDECHAINS PROVIDE
Independent networks with their own consensus, connected by bridges.
WHAT THEY DO NOT INHERIT
The main chain's security.
WHY BRIDGES ARE DANGEROUS
They hold locked assets, and have been repeatedly exploited for very large sums.
WHAT TO EXAMINE BEFORE USING ANY SCALING SOLUTION
What trust assumptions it introduces, and how withdrawal works if operators stop.
