Crypto Education – Layer 1 Blockchain Solutions Explained | Animation | Cryptomatics

Hello and welcome to a new Cryptomatics episode! In this video, we will explain 
what Layer-1 blockchain solutions   are and what their purpose is. We will also take a look at the 
most common Layer-1 solutions. If you are interested in being the first 
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Blockchain Scalability and 
Solutions to Increase It To understand Layer-1 solutions, we must 
first take a look at blockchain scalability. Despite providing users with a variety 
of benefits, such as decentralization,   high levels of security, and 
recordkeeping that cannot be changed,   blockchain technology still 
comes with a few drawbacks. As its usage becomes more common, 
various issues are surfacing. One of them is scalability, which 
refers to the system’s throughput rate   measured by how many transactions 
are performed per second (TPS).

However, the more general definition of this 
term may vary from one expert to another,   and it may sometimes be used to refer 
to the system’s ability to provide   every user with a rich experience, no matter 
how many users it has at any given time. Considering the increasing usage of 
cryptocurrencies in everyday life,   the need for blockchain layers has also grown. Such layers are necessary for ensuring 
higher network security and speed,   better recordkeeping, higher TPS, and so on. Here is where Layer 1 and Layer 
2 solutions come into play. What Are Layer-1 Solutions and How Do They Work? When talking about a decentralized system, 
a Layer-1 network refers to a blockchain. The purpose of Layer-1 solutions is to improve the   base protocol itself in order 
to make scalability possible. Layer-2 solutions are networks or 
technologies that operate on top of   an underlying blockchain protocol to 
improve efficiency and scalability. While Bitcoin, Ethereum, and Litecoin are 
Layer-1 blockchains, Lighting Network is   a Layer-2 solution that was built to increase 
the transaction speeds on the Bitcoin network.

When it comes to Layer-1 solutions, they change 
the rules of the blockchain’s protocol to   increase its transaction speed and capacity 
and thus accommodate more users and data. For example, a Layer-1 scaling solution 
could be used to accelerate the speed of   block confirmation or to augment 
how much data a block contains. Such solutions would then 
increase the network’s throughput. Types of Layer-1 Solutions The two most common Layer-1 
solutions include the following: Consensus Protocol Changes Since some consensus mechanisms 
are more efficient than others,   projects such as Ethereum are moving from the 
slow Proof of Work mechanism to Proof of Stake. The latter ensures higher speeds 
and is more energy-efficient   than the former as it doesn’t require 
miners to solve complex cryptographic   algorithms and thus use 
substantial computing power.

Instead, a PoS system processes and validates   the new blocks of data based 
on the participants’ stake. Sharding Sharding is one of the most popular 
layer-1 scalability methods,   and it is a mechanism that has been 
adapted from distributed databases. Through sharding, transaction sets 
are broken down into smaller pieces,   known as “shards,” which are 
processed by the network in parallel. Since the workload is spread across 
the peer-to-peer network better,   blocks are completed faster. Ethereum 2.0, Tezos, and Zilliqa 
are exploring the use of shards. You can find out more about PoS and 
sharding in our videos on these topics. Conclusions Scalability becomes an issue when the amount 
of data that passes through a blockchain   is limited because of its insufficient capacities.

To overcome such problems and ensure 
faster processing times and a higher   number of transactions per second, blockchain 
developers are working on scaling solutions. Layer-1 solutions improve the 
base protocol of a blockchain   by changing how it operates 
in terms of data processing. One of their advantages is that there is   no need to add something on top 
of the existing infrastructure.

Changes to the blockchain’s consensus 
protocol and sharding are two such solutions. I hope you enjoyed today’s video, and if 
you have other questions about Layer 1   Blockchain Solutions, don't hesitate 
to tell us in the comment section. So much for today, don't forget to 
subscribe to the Cryptomatics channel,   if you want to stay up to date with the 
latest concepts in the crypto sector..

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