# Advancing Blockchain Scalability: An Introduction to Layer 1 and Layer 2 Solutions

arXiv: https://arxiv.org/abs/2406.13855 · HTML: https://mlsanity.com/paper/2406.13855/

## Key facts

- Cited by 4 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 19 Jun 2024.

## Built on by (most cited first, 4 of 4)

- [A Comprehensive Study on Quantization Techniques for Large Language Models](https://mlsanity.com/paper/2411.02530/) (2024)
- [Blockchain for Large Language Model Security and Safety: A Holistic Survey](https://mlsanity.com/paper/2407.20181/) (2024)
- [A Comprehensive Review on Noise Control of Diffusion Model](https://mlsanity.com/paper/2502.04669/) (2025)
- [AI-Based Crypto Tokens: The Illusion of Decentralized AI?](https://mlsanity.com/paper/2505.07828/) (2025)

## Abstract (arXiv)

Bitcoin rise has put blockchain technology into the mainstream, amplifying its potential and broad utility. While Bitcoin has become incredibly famous, its transaction rate has not match such a corresponding increase. It still takes approximately 10 minutes to mine a block and add it to the chain. This limitation highlights the importance of seeking scale-up solutions that solve the low throughput transaction rates. Blockchain's consensus mechanisms make peer-to-peer transactions becomes feasible and effectively eliminate the need for centralized control. However, the decentralized systems also causes a lower speed and throughput compared to centralized networks as we mentioned Bitcoin's block creation rates. Two mainstreams scale-up solutions, Layer 1 scale-up and Layer 2 scale-up have been implemented to address these issues. Layer 1 level scalability enhancements happen at where traditional blockchain operates. This paper provides a deep examination of the components of the Layer 1 protocol and the scale-up methods that directly improve the lower level blockchain. We also address that Layer 1 solutions encounter inherent limitations although improvements were applied due to layer 1 storage costs and latency are high. In addition, we discuss layer 2 protocols, advanced scalability techniques, that elevate blockchain performance by handling transactions off the mainnet. Our findings indicate that Layer 2 protocols, with their various implementations such as rollups and channels, significantly outperform Layer 1 solutions in terms of transaction throughput and efficiency. This paper discusses these Layer 2 scaling methods in detail, aiming to provide readers with a comprehensive understanding of these protocols and the underlying logic that drives their effectiveness.