Blockchain Scalability & Performance Flashcards
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Read the first 7 Blockchain Scalability & Performance flashcards as text
What is the primary purpose of a Layer 2 scaling solution in blockchain?
Answer: To process transactions off the main chain while inheriting its security
Layer 2 solutions process transactions off the main blockchain (Layer 1) while leveraging its security and settlement guarantees.
Which scaling technique divides a blockchain network into smaller groups of nodes, each responsible for processing a subset of transactions?
Answer: Sharding
Sharding splits the network into parallel partitions called shards, each handling a portion of the transaction load to increase overall throughput.
What is a 'state channel' in the context of blockchain scaling?
Answer: An off-chain communication channel where participants exchange signed transactions privately and settle on-chain only at the end
State channels allow participants to conduct many transactions off-chain and only broadcast the final settled state to the main blockchain.
Bitcoin's Lightning Network is an example of which Layer 2 scaling category?
Answer: Payment/State channel network
The Lightning Network is a payment channel network built on Bitcoin, enabling fast and cheap off-chain transactions settled bilaterally.
Which metric is most commonly used to measure and compare blockchain transaction throughput?
Answer: Transactions per second (TPS)
Transactions per second (TPS) directly measures how many transactions a network can confirm per second, making it the standard throughput benchmark.
What is an 'Optimistic Rollup' in Layer 2 blockchain scaling?
Answer: A Layer 2 solution that batches off-chain transactions and assumes their validity, relying on fraud proofs during a challenge window
Optimistic Rollups assume transactions are valid by default and allow a challenge period during which verifiers can submit fraud proofs to dispute invalid state transitions.
What does the 'blockchain trilemma' (as described by Vitalik Buterin) refer to?
Answer: The inherent difficulty of simultaneously achieving decentralization, security, and scalability in a blockchain
The blockchain trilemma states that achieving decentralization, security, and scalability all at once is extremely difficult, and improving one typically comes at the expense of another.