Scaling blockchain with Layer 2

Scaling is a difficulty faced by most blockchain systems, including the Steem blockchain. As Steem's user base and transaction volume continue to expand, finding effective scaling solutions becomes crucial. Layer 2 scaling solutions present a promising approach to tackle this problem.^[1]

Layer 2 scaling solutions refer to protocols or technologies that are developed on top of the base blockchain layer. These solutions aim to enhance transaction throughput, decrease fees, and improve scalability. They achieve this by executing transactions or computations off-chain, while still maintaining the security and decentralization features of the underlying blockchain ^[2]

An example of a Layer 2 scaling solution for the Steem blockchain involves incorporating sidechains. These sidechains are separate blockchains that can interact with the main blockchain and effectively manage a significant number of transactions. By delegating certain transaction processing tasks to a sidechain, the primary Steem blockchain can effectively handle increased transaction loads without compromising performance or security

State channels are a promising Layer 2 solution that enables users to carry out multiple transactions off-chain, while still finalizing the state on the main blockchain. By reducing the number of transactions processed on the main blockchain, state channels greatly enhance the scalability of the Steem blockchain. This solution is especially advantageous for applications that demand frequent and rapid transactions, like microblogging and social media platforms.