The post Layer 2 Solution Enhancing Ethereum’s Scalability appeared on BitcoinEthereumNews.com.

The Ethereum network has been facing scalability issues for a long time. The main reason is network congestion, which leads to slow transaction speeds and high fees. Validiums offer a relatively inexpensive solution to reduce congestion and transaction speed. Validiums are a Layer-2 scaling solution that reduces congestion on the mainnet by processing the transactions off-chain. Layer 1 solutions cannot handle the load of multiple transactions simultaneously. Validiums process transactions off-chain to solve scalability issues. After processing transactions, it sends zero-knowledge proofs of the transactions to the mainnet for verification. This works differently than other solutions, like state channels and rollups. Mechanics of Validiums Validiums improve the scalability of the Ethereum network by processing transactions off-chain. It means that this layer 2 solution stores transactions away from the main blockchain.  This process is called off-chain processing. It stores data on a sidechain that runs parallel to the main blockchain. Some validators maintain the sidechain for the correct processing of data. It is responsible for processing multiple transactions as a single unit. In this way, Validiums reduce strain on the main blockchain.  Also, this solution uses validity proofs to ensure the integrity of transactions. These proofs are cryptographic assurances that all transactions are correctly processed. Also, these proofs are sent to the main blockchain for verification. In this way, validity proofs enhance scalability by helping the main blockchain not process every transaction. Smart contracts also play an essential role in processing transactions through Validiums. A smart contract credits the funds to the recipient only after the validity proof is accepted off-chain. It manages the withdrawal system by transferring the funds from the sidechain to the user’s wallet. In this way, this layer-2 solution increase transaction throughput without compromising on security. Ethereum Blockchain | Source: Unchained Crypto Benefits For Ethereum Blockchain  This…

---

Filed under: News - @ June 30, 2024 4:18 pm