Early Attempts at Scaling Web3
Scaling Web3 can’t be solved by simply increasing block size or speeding up block times anymore.
Early scaling tried Layer 1 tweaks like bigger blocks and faster times to boost throughput. But these raised node demands and centralization risks, hitting limits for monolithic blockchains.
Why Monolithic Blockchains Hit Limits
Why? Because pushing limits requires more from every node, making it harder for smaller participants to run full nodes. This pressures centralization, clashing with decentralization principles.
The core issue: blockchains were monolithic. Consensus, execution, and data availability were tightly coupled, blocking independent optimization.
Layer 1 Scaling Methods and Trade-Offs
Layer 1 methods like Segregated Witness, sharding, and Proof-of-Stake improved performance but brought trade-offs:
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Complex design
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Communication overhead
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Stake concentration risks.
The Shift Toward Modular Blockchains
Now, the focus has shifted to modular blockchains, separating these functions into layers. This lets consensus, execution, and data availability scale independently.
Layer 2 Solutions for Blockchain Scalability
Layer 2 protocols, on the other hand, offload execution from Layer 1, greatly increasing throughput:
Optimistic Rollups
Optimistic Rollups assume transaction validity, using fraud proofs and trading instant finality for speed.
Zero-Knowledge Rollups
Zero-Knowledge Rollups validate transactions instantly via cryptographic proofs, improving privacy but demanding more computation.
State Channels
State Channels enable near-instant microtransactions off-chain, perfect for frequent small payments.
Sidechains
Sidechains run parallel chains with independent security, useful for experimentation but needing risk management.
Leading Projects in Modular Blockchain Scaling
Projects like Celestia (data availability), Polygon 2.0 (modular ZK rollups), and EigenLayer (shared security through re-staking) lead this modular shift.
The Path to Sustainable Web3 Scaling
Hence, boosting throughput without addressing decentralization and governance risks recentralizes networks. Sustainable scaling needs a holistic mix of crypto, incentives, and governance to keep Web3 trustless and ready for mainstream adoption.
