Layer 2 Scalability

One approach to increasing a blockchain network’s transaction scalability is to utilize linked Layer 2 networks to reduce burden on the main chain. They do so by allowing users to conduct a number of transactions on this separate channel, while only recording the final state (net changes) of both accounts to the main blockchain. This significantly reduces the number of transactions the main blockchain needs to verify and record, which in turn speeds up the processing time of the remaining transactions. Transaction fees may decline as a result. An example of a second layer scalability solution is the Lightning Network.