degen-punks

Blockchain Scalability: Layer 1 vs. Layer 2. Layer 1 solutions like Ethereum 2.0 aim to upgrade the core blockchain, enhancing throughput and reducing fees. Layer 2 solutions such as rollups and state channels offload transactions to separate networks, improving speed and scalability. Each has tradeoffs: Layer 1 changes are complex and take time, while Layer 2 can introduce security and interoperability issues. Understanding these differences is key to navigating the evolving crypto landscape.