Why Large Blocks on L1 Don't Work: Understanding Blockchain Scalability

The large block on L1 idea has always faced a fundamental problem: scalability. You can place a large block or a more expensive layer on top of a cheap L1 (Layer 1), allowing for small L1 and large L2 (Layer 2) configurations. However, the reverse doesn’t work because it’s mandatory in one direction.

Imagine a country club membership analogy. You can’t force everyone to join a high-cost club (L1) and then offer a trivial add-on for an extra $5. It doesn’t make sense to impose a $12,000 monthly fee for basic access and then offer a minor benefit. However, it does make sense to have everyone pay a minimal fee, like $5, and then offer optional high-cost services for those who want to pay more for premium benefits.

The reverse structure—small L1, large L2—ensures scalability and accessibility, allowing for a more inclusive and flexible system. By understanding this, we can create a more efficient and adaptable blockchain ecosystem that caters to all users, from casual participants to high-end users.

Update

Steve Rich's Exciting New Book: A Journey into the World of Forex Trading!

Interview

Full interview @stewartmackenzieindaba

#bitcoin #btc #blockchain #crypto #cryptocurrency #sidechain #drivechain #layertwolabs #paulsztorc