Ethereum Scaling

Overview

The main goal of scalability is to increase transaction speed, and transaction throughput, without sacrificing decentralization or security.

 

On-Chain Scaling

It requires changes to the Ethereum protocol. Sharding is currently the main focus for it.

Sharding

: the process of splitting a database horizontally to spread the load.

It will reduce network congestion and increase TPS by creating new chains, known as "shards." This will also lighten the load for each validator who will no longer be required to process the entirety of all transactions across the network.

Off-Chain scaling

These solutions are implemented separately from layer 1 Mainnet. Some solutions derive their security directly from layer 1 Ethereum consensus, such as rollups or state channels. Other solutions involve the creation of new chains in various forms that derive their security separately from Mainnet, such as sidechains or plasma chains.

Layer 2 scaling

Most of layer 2 solutions are centered around a server or cluster of servers. Transactions are submitted to these layer 2 nodes instead of being submitted directly to Mainnet.

Rollups

Rollups perform transaction execution outside layer 1 and then the data is posted to layer 1 where consensus is reached. As transaction data is included in layer 1 blocks, this allows rollups to be secured by native Ethereum security.

- ZK-rollups

- Optimistic rollups

State channels

: utilize multising contracts to enable participants to transact quickly and freely off-chain, then settle finality with Mainnet.

 

Sidechains

: an independent EVM-compatible blockchain which runs in parallel to Mainnet.

 

Reference

https://ethereum.org/en/developers/docs/scaling/