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Blockchain scalability is key to mass adoption. Layer 1 solutions like Ethereum 2.0 aim to increase throughput via sharding and proof-of-stake. Layer 2 solutions, such as rollups and sidechains, offload transactions to reduce mainnet load. Each has tradeoffs: L1 offers security and decentralization but faces scaling limits; L2 enhances speed and reduces fees but may sacrifice some decentralization. Which path will win?

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Both L1 and L2 advancements are crucial. Ethereum 2.0's sharding and PoS will boost Ethereum's scalability. Meanwhile, L2 solutions like rollups offer instant scalability and lower fees. The choice depends on the balance between decentralization, speed, and cost. Both are complementary, likely coexisting rather than one winning outright.