Tag: Layer-1 vs Layer-2

For blockchains to compete with legacy payments processors, they need to be able to process high volumes of transactions quickly, at a low cost. There are several ways to scale a blockchain. Layer-1 scaling solutions make improvements to the underlying layer-1 protocol, whereas layer-2 solutions take computations off-chain to reduce congestion. But, which is the better solution out of layer-1 vs layer-2?