The Ethereum network is presently the largest decentralized layer 1 blockchain for smart contracts in both market value and trade volume, and its growth has been unrelenting. However, Ethereum has a lengthy history of congestion problems, frequently resulting in users paying exorbitant gas fees.

The first and most common issue occurred in December 2017, when Cryptokitties overloaded the Ethereum network and forced it to a standstill. Ethereum, like the Bitcoin network, still has restrictions such as slow transaction speeds and low TPS (transactions per second).

These constraints prohibit Ethereum from expanding effectively and have sparked conversations about how to avoid such incidents in the future, resulting in the development of many solutions to Ethereum's congestion and high gas fees. As a result, numerous solutions or methods for scaling are being looked into.

What Different Blockchain Scaling Solutions Are There?

Presently, to scale layer-1 blockchains like Ethereum, there are two primary methods: These are the on-chain scaling and the off-chain scaling.

Examples of on-chain scaling are Sharding and Segregated Witnesses.

Off-chain scaling, also called Layer-2 scaling solutions, is the creation of an alternative protocol that lives on top of the blockchain; transactions are executed immediately, and the lag time is reduced compared to on-chain transactions. Layer-2 solutions help to scale the Ethereum network by processing transactions separately from the mainnet; It basically involves transactions off-chain, on third-party networks, which lightens the load on the mainnet while maintaining its security.

These layer-2 solutions help Ethereum scale by allowing for better throughput and reduced costs while retaining the network's time-tested decentralized characteristics. Optimistic rollups, zero-knowledge rollups, and state channels are a few of these, which have been explained in more detail here.

Alternatively, Layer-2 solutions could also involve the use of side chains, which run concurrently with the mainnet; some examples of these include validium and plasma chains, state channels, etc.

The Ethereum Layer 2 blockchains are becoming increasingly popular in the cryptocurrency sphere and have become a vital service for investors. Several L2 blockchains have emerged in the crypto sector to compete for market share on the Ethereum blockchain, with the top three being Optimism, Arbitrum, and Polygon. This article will describe their technical backgrounds, and these layer 2 networks will be compared.

What is Optimism?

Optimism is a well-known Ethereum layer-2 solution that makes use of optimistic rollups. Transactions are aggregated into manageable batches before being posted on the Ethereum mainnet. Optimism provides cheaper transaction costs by 'rolling up' transactions into a single final transaction, as gas payments are paid once on Ethereum.

These roll-up transactions are called 'optimistic' since they are considered genuine unless proven otherwise. They also stipulate a time frame for invalid transactions to be disputed by presenting fraud proofs. Any suspected null transaction is processed in a single round off-chain to identify the problematic section. It is then transferred to Layer-1 for verification one at a time. Optimism reimburses the gas used to run the fraud-proof.

Holders of Optimism's OP token utilize it to regulate decision-making on the network.

With Cwallet, you can transfer, receive, and store your OP tokens for free, as well as trade the OP tokens to and from over 800 cryptocurrencies on Cwallet.

You can also use those OP tokens to engage with any of the multiple services Cwallet has on offer, such as airdropping, tipping, bulk payments, mobile top-ups, and many more.

What is Arbitrum?

Arbitrum is another well-known Ethereum layer-2 solution that employs optimistic rollups. Its optimistic rollups check for invalid transactions using many rounds of fraud proofs.

It is also distinct from Optimism because it has its own virtual machine, the Arbitrum Virtual Machine (AVM). Arbitrum smart contracts use the AVM as their execution layer.

After launching its native token, often used as a utility and governance token, Arbitrum has gained some more relevance lately and is being widely held.

You can hold those ARB tokens on Cwallet, send and receive them on Cwallet for free, and even more, equally trade those ARB tokens to and from any of the 800+ cryptocurrencies available on Cwallet.

ARB tokens may also be used to carry out a lot more services on Cwallet, including tipping and airdropping, mobile top-ups, bulk payments, and much more.

What is Polygon?

Polygon is a popular Ethereum layer-2 solution that uses the sidechain idea. It employs a proof-of-stake consensus process, which enables much cheaper gas expenses and up to 65,000 transactions per second.

Polygon's sidechain supports three different layer-2 scaling solutions: plasma chains, optimistic rollups, and ZK rollups. Furthermore, Polygon has recently published zkEVM: ZK rollups compatible with the Ethereum virtual machine.

Polygon is essentially an Ethereum multi-chain solution that addresses scalability difficulties and enables the hosting of an infinite number of decentralized apps.

The MATIC native token is used to control and safeguard the Polygon network. MATIC is also employed in the payment of network transactions. The token can also be staked by its owners to receive yearly interest for their part in helping to validate blockchain transactions.

Its market value is projected to increase as more projects seek to develop faster and more scalable systems on the Ethereum network, making it a must-have token.

You can get your Polygon token on Cwallet and enjoy the benefits of sending and receiving for free. You can also trade your Polygon tokens to and from any of the 800+ cryptocurrencies available on Cwallet.

Which Is The Best Between Polygon, Optimism, and Arbitrum?

From the perspective of a developer, all three layer-2 scaling methods have two goals: scaling Ethereum and minimizing gas expenses. However, Polygon is the best fit for someone looking to improve functionality because it is quicker than the other two and offers more benefits due to its ability to work as an independent environment.

When you use Cwallet, you may avoid paying fees for sending and receiving cryptocurrencies and NFTs across any blockchain network at the speed of light.

Cwallet is interoperable with over 800 coins and 50 blockchains, giving you virtually limitless trading alternatives. Cwallet's price charts are updated in real-time, allowing you to obtain real-time updates on the best cryptocurrencies to invest in.

So, why wait? Try Cwallet right now and say goodbye to network expenses!