Blockchain and Crypto Blog

Ivan on Tech Academy provides latest insights and reports about the blockchain industry.

eth 2.0 ethereum 2.0 sharding

Breaking Down ETH 2.0 - Sharding Explained

Written By Ivan on Tech

Jun 17, 2020

Over the past few days, we gave you a general overview of how Ethereum 2.0, or ETH 2.0, works and then showed you ETH 2.0 Staking and the Casper Protocol’s nuances. In this one, we are going to look into another massive feature of ETH 2.0 – Sharding.

Layer 1 vs Layer 2 Scalability

One common criticism of various cryptocurrency and altcoin systems is that of scalability. Put simply, if cryptocurrency and blockchain technology is going to drive the DeFi world of tomorrow, it needs to be able to support billions of people. This is something our comprehensive DeFi guide goes into in-depth, but there are already many solutions. Scalability techniques mainly fall into the following categories - layer 2 and layer 1.

Layer-2 scalability

These are off-chain scalability solutions built on top of the blockchain. The idea here is to leave the base layer alone and put on extra architecture on top of it. This layer deals with complex computations which mitigates the architectural...

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