Implementing Layer-2 solutions is a pivotal best practice for enhancing blockchain scalability. These solutions operate atop existing blockchain networks, processing transactions off-chain and thereby reducing the computational load on the main chain. By handling transactions externally and recording only essential data on-chain, Layer-2 protocols significantly increase transaction throughput and decrease latency. Notable implementations include payment channels, sidechains, and rollups, each contributing uniquely to scalability improvements. The paper “Advancing Blockchain Scalability: An Introduction to Layer 1 and Layer 2 Solutions” provides an in-depth examination of these scalability challenges and solutions, highlighting that Layer-2 protocols, such as rollups and channels, significantly outperform Layer-1 solutions in terms of transaction throughput and efficiency.
