Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-cd9895bd7-q99xh Total loading time: 0 Render date: 2024-12-26T23:13:09.744Z Has data issue: false hasContentIssue false

4 - The Scalability of Web3

from Part II - Technological Underpinnings of Web3

Published online by Cambridge University Press:  21 November 2024

Ken Huang ,
Youwei Yang ,
Fan Zhang ,
Xi Chen  and
Feng Zhu
Ken Huang
Affiliation:
DistributedApps.ai
Youwei Yang
Affiliation:
Bit Mining Limited
Fan Zhang
Affiliation:
Yale University, Connecticut
Xi Chen
Affiliation:
New York University
Feng Zhu
Affiliation:
Harvard Business School
Get access

Summary

Chapter 4 examines the scaling of Web3 to support widespread adoption. It first discusses why scalability is crucial for Web3, enabling it to handle high transaction volumes and users such as centralized systems. Scalability refers to the ability to sustain performance amid growth. Key factors are number of users, response time, storage, transaction costs, and throughput. Scalability is challenging due to the blockchain trilemma of decentralization, security, and scalability. Solutions involve optimizations at the network layer (layer 0), blockchain layer (layer 1), and Off-chain layer (layer 2). Layer 0 focuses on data transfer, using protocols such as BloXroute. Layer 1 aims to improve the blockchain itself via methods like sharding or new consensus algorithms. Layer 2 leverages Off-chain processing via rollups, sidechains, and state channels. Each layer has trade-offs. Rollups bundle transactions Off-chain using zero-knowledge proofs or fraud proofs before validating On-chain. Sidechains process transactions externally to relieve the main chain’s load. State channels allow Off-chain transfers between participants. No single scaling approach fits all cases. A combination of solutions across layers tailored to the application offers the most potential.

Type
Chapter
Information
Web3
Blockchain, the New Economy, and the Self-Sovereign Internet
 , pp. 95 - 120
Publisher: Cambridge University Press
Print publication year: 2024

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Agarwal, Gaurav. 2020. “State Channels: An Introduction to Off Chain Transactions.” Talentica. www.talentica.com/blogs/statechannelsanintroductiontooffchaintransactions/.Google Scholar
Alchemy. 2022. “What is danksharding?” Alchemy. https://www.alchemy.com/overviews/danksharding.Google Scholar
Awosika, Emmanuel. 2022. “A Beginner’s Guide to the Liquid Network.” HackerNoon. https://hackernoon.com/abeginnersguidetotheliquidnetwork.Google Scholar
BloXroute. 2019. “A Scalable Trustless Blockchain Distribution Network.” BloXroute. https://BloXroute.com/wpcontent/uploads/2019/11/BloXrouteWhitepaper.pdf.Google Scholar
Buterin, Vitalik. 2021. “Why Sharding Is Great: Demystifying the Technical Properties.” https://vitalik.ca/general/2021/04/07/sharding.html.Google Scholar
Buterin, Vitalik, Feist, Dankrad, Loerakker, Diederik, and Kadianakis, George. 2022. “EIP 4844: Shard Blob Transactions.” Ethereum Improvement Proposals. https://eips.ethereum.org/EIPS/eip4844.Google Scholar
Cevallos, Alfonso. 2023. “Nominated Proof of Stake – Research at W3F.” Research at W3F. https://research.web3.foundation/en/latest/polkadot/NPoS/index.html.Google Scholar
Craig, Jeffrey. 2021. “What Is Liquid Network: BTC Layer 2 Sidechain Solution.” Phemex. https://phemex.com/academy/whatisliquidnetwork.Google Scholar
Ethereum.org. 2022. “Layer 2 | ethereum.org.” Ethereum.org. https://ethereum.org/en/layer2/.Google Scholar
Ethereum.org. 2023. “Zero Knowledge Rollups | ethereum.org.” Ethereum.org. https://ethereum.org/en/developers/docs/scaling/zkrollups/.Google Scholar
Faggart, Evan. 2015. “Should We Raise the Bitcoin Block Size Limit?” Bitcoinist. https://bitcoinist.com/shouldweraisebitcoinblocksizelimit/.Google Scholar
GeeksforGeeks. 2022. “Delegated Proof of Stake (DPoS).” GeeksforGeeks. www.geeksforgeeks.org/delegatedproofofstake/.Google Scholar
Gorsline, Erin. 2018. “What Is Raiden Network Token? A Starter Guide.” CoinCentral. https://coincentral.com/whatisraidennetworktokenabeginnersguide/.Google Scholar
Henderson, Rob. 2022. “Zilliqa: The Sharding Chain. A look at the blockchain that has … | by Novum Insights | Medium.” Novum Insights. https://novuminsights.medium.com/zilliqatheshardingchaind25bb81c3fdc.Google Scholar
Hussey, Matt, Copeland, Tim, and Phillips, Daniel. 2022. “What Is Lightning Network? Bitcoin’s Scalability Solution.” Decrypt. https://decrypt.co/resources/bitcoinlightningnetwork.Google Scholar
Kanga University. 2021. “20. Segregated Witness What Is Segwit Bitcoin All About?” Kanga University. https://kanga.university/en/lessons/20segregatedwitnesswhatissegwitbitcoinallabout/.Google Scholar
Kaur, Guneet. 2023. “What is Cosmos: A beginner’s guide to the ‘Internet of Blockchains.’” Cointelegraph. https://cointelegraph.com/learn/what-is-cosmos-a-beginners-guide-to-the-internet-of-blockchains.Google Scholar
Mearian, Lucas. 2019. “Sharding: What It Is and Why Many Blockchain Protocols Rely on It.” Computerworld. www.computerworld.com/article/3336187/shardingwhatitisandwhysomanyblockchainprotocolsrelyonit.html.Google Scholar
Moralis, . 2022. “What Is Danksharding? EIP 4844 and Danksharding Explained.” Moralis. https://moralis.io/whatisdankshardingeip4844anddankshardingexplained/.Google Scholar
Oliveira, Mesquita. 2023. “Optimistic Rollups | ethereum.org.” Ethereum.org. https://ethereum.org/en/developers/docs/scaling/optimisticrollups/.Google Scholar
Plavnik, Julie. 2022. “State Channels Still Beat All Other Layer-2 Scalability Solutions.” Medium. https://medium.com/yellow-blog/state-channels-still-beat-all-other-layer-2-scalability-solutions-42533d675e92.Google Scholar
Rasure, Erika. 2021. “Zk SNARK: Definition, How It’s Used in Cryptocurrency, and History.” Investopedia. www.investopedia.com/terms/z/zksnark.asp.Google Scholar
Rasure, Erika. 2022. “What Does Proof of Stake (PoS) Mean in Crypto?” Investopedia. www.investopedia.com/terms/p/proofstakepos.asp.Google Scholar
Rodriguez, Jesus. 2018. “A Layer-0 Scalability Solution for Any Blockchain.” HackerNoon. https://hackernoon.com/a-layer-0-scalability-solution-for-any-blockchain-36cb6b489d69.Google Scholar
Roth, Stephan. 2022. “An Introduction to Sidechains.” CoinDesk. www.coindesk.com/learn/anintroductiontosidechains/.Google Scholar
SKALE. 2022. “SKALE Primer: How SKALE Works.” SKALE. https://skale.space/primer.Google Scholar
Smith, Corwin. 2023. “Optimistic Rollups | ethereum.org.” Ethereum.org. https://ethereum.org/en/developers/docs/scaling/optimisticrollups/.Google Scholar
Unchained, Chjango. 2018. “Tendermint Explained Bringing BFT Based PoS to the Public Blockchain Domain.” Cosmos Blog. https://blog.cosmos.network/tendermintexplainedbringingbftbasedpostothepublicblockchaindomainf22e274a0fdb.Google Scholar
Wood, Gavin. 2021. “Substrate and Polkadot.” Substrate. https://substrate.io/vision/substrateandpolkadot/.Google Scholar
Yang, Sen, Zhang, Fan, Huang, Ken, Chen, Xi, Yang, Youwei, and Zhu, Feng. 2022. “[2212.05111] SoK: MEV Countermeasures: Theory and Practice.” arXiv. https://arxiv.org/abs/2212.05111.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×