As blockchain adoption increased, the throughput of existing blockchain technology could not keep up with the increasing volume. Research and development of potential solutions are currently being explored in the blockchain ecosystem. Blockchain scaling solutions are divided into different tiers, mainly tier 1 and tier 2. Tier 1 scaling refers to modifying the blockchain itself to increase scalability. Changing the blockchain directly is complex.
Layer 2 scaling refers to increasing the throughput of a blockchain by refreshing the physical blockchain and enabling off-chain transaction processing. Authenticated messages sent between users transacting off-chain accomplish this. These authenticated messages pass through an external medium to the physical blockchain’s first layer but depend on it. The leading blockchain is only invoked to resolve disputes. The consensus algorithm determines the security and non-surveillance features of the second layer. When classifying layer two scalability solutions, there are three classifications: protocols, commit-chains, and channels.
Protocols are vital components of blockchain technology and allow secure and reliable information sharing between cryptocurrency networks. They are basic rules that define how data can be shared between computing systems.
Commitment chains leverage an untrusted, non-custodial operator to facilitate communication between transacting parties. The operator commits to the status of user account balances by sending periodic updates to the main blockchain.
The channel, which is a mechanism, provides a particular layer for communication. This allows subsets of members to create a separate ledger for their transactions. Posschain’s Alpha layer combines all three of these Layer 2 methodologies to develop a unique scalability layer used to scale any blockchain.