Layer 1 blockchain scalability solutions: Tackling high transaction fees

4 minutes

Hwang Mee
30/08/2023 12:00 AM

    1. Introduction

    As blockchain networks gain traction, concerns about scalability and transaction fees have grown. Layer 1 scalability solutions offer promising strategies to enhance the performance of these networks while reducing transaction costs.

    2. Understanding scalability in blockchain

    Scalability refers to a blockchain network's ability to handle a larger number of transactions or operations without sacrificing speed, security, or decentralization.

    3. Introducing layer 1 scalability solutions

    Layer 1 scalability solutions focus on improving the underlying blockchain protocol to handle more transactions per second (TPS) and increase network throughput.

    4. Key approaches to layer 1 scalability

    • Sharding: Dividing the blockchain into smaller parts (shards) that process transactions independently.
    • Consensus mechanism enhancements: Optimizing consensus algorithms to reduce the time it takes to validate transactions.
    • Sidechains: Creating separate chains that can interact with the main chain, offloading some transaction traffic.
    • Blockchain forks: Developing new chains with improvements and migrating users and assets.

    5. Impact on transaction fees

    Layer 1 scalability solutions aim to reduce transaction fees by increasing the network's capacity to process more transactions, leading to less competition for block space.

    6. Examples of layer 1 scalability projects

    • Ethereum 2.0 (Eth2): Transitioning from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus mechanism to improve scalability.
    • Avalanche: Utilizing a consensus protocol called Avalanche to achieve high throughput and low latency.
    • Polkadot: Enabling interoperability between blockchains and allowing them to share security while maintaining their consensus mechanisms.

    7. Considerations and challenges

    While Layer 1 scalability solutions offer potential benefits, they also introduce challenges such as network security, decentralization, and potential disruptions during upgrades.


    Layer 1 scalability solutions hold the key to addressing the challenges of blockchain scalability and high transaction fees. By enhancing the core protocol, these solutions aim to create more efficient and cost-effective blockchain networks.


    While they can significantly reduce fees, complete elimination depends on factors like network adoption and demand.
    Yes, various blockchain networks can implement Layer 1 scalability solutions tailored to their architecture.
    Some solutions may introduce trade-offs between scalability and security, requiring careful design and testing.
    No, Layer 2 solutions like payment channels and state channels also play a role in reducing fees.
    Improved scalability leads to faster transaction confirmation times and lower fees, enhancing user experience.

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