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Ethereum Scaling Solutions
Blockchain technology is the next generation of finance. Leveraging cryptocurrencies, blockchain eliminates intermediaries from all transaction processes, creating trust and securing an innovative financial sector. The key to this novel settlement layer is the Ethereum network.
Ethereum is the world’s most popular decentralized application network. It is home to the cryptocurrency world’s most popular trends and projects. Its fans believe that Ethereum will be the Web3 internet settlement layer.
It has excellent network effects and a great community rallying around it. Better still, the community has maintained a decentralized ethos. Here every voice matters. Unfortunately, over time, the network’s popularity has become its stumbling block.
Ethereum cannot scale fast enough to disrupt legacy finance. Alongside its congestion problem are pocket-burning transaction fees. Ethereum’s critics believe that Ethereum and its token Ether’s success will collapse under the weight of its woes.
For this reason, the Ethereum community has its eyes set on scaling solutions that increase its capacity and enhance network speeds. These solutions are classified as Layer 1 or Layer 2 solutions.
