Ethereum LAYER 2 SCALING explained (rollups, plasma, channels, sidechains)

Ethereum LAYER 2 SCALING explained (rollups, plasma, channels, sidechains)

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Ethereum LAYER 2 SCALING explained (rollups, plasma, channels, sidechains)
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So what is scaling Ethereum Layer 2 all about? And what is the difference between projects like Optimism, xDai, OMG and Loopring? In this video we answer all these questions.

Scaling Ethereum has been one of the most discussed topics since the network's launch. The debate about scaling always flares up after a period of major network congestion.

One of the first periods like this was the crypto bull market of 2017, where the infamous CryptoKitties, along with ICOs, were able to clog the entire Ethereum network, causing a major spike in gas rates.

This year, network congestion returned even more strongly, this time driven by the popularity of DeFi and yield farming. There were periods when even gas charges as high as 500 gwei couldn't get your transaction verified for a while.

When it comes to scaling Ethereum or blockchains in general, there are two main ways to do this: scaling the base layer itself (layer 1) or scaling the network by moving some of the work to another layer to move – layer 2.

When it comes to actual scaling solutions, there are several options available. While some of the options are already available now and could increase the throughput of the Ethereum network in the short to medium term, others target a medium to long term.

Some scaling solutions are application specific, for example payment channels. Others, such as optimistic rollups, can be used for arbitrary contract executions.

To better understand these differences, let's explore the most popular Layer 2 scaling solutions.

/"A rollup-centric Ethereum roadmap/" by Vitalik Buterin https://ethereum-magicians.org/t/a-rollup-centric-ethereum-roadmap/4698

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