Active Research Fields

Blockchain technology is a revolutionary innovation that has been gaining traction in recent years. The technology’s unique characteristics, including decentralization, immutability, and transparency, have led to its widespread adoption in various industries. As blockchain continues to grow, so does the scope of research in the field. Active research fields in blockchain are mostly focused on addressing the following challenges:

• Scalability

• Interoperability

• Lack of regulation

Scalability

One of the main issues with blockchain solutions is scalability. As the number of transactions on a blockchain network increases, so does the time and resources required to verify and process those transactions. This can lead to slower transaction speeds and higher fees, limiting the potential of blockchain for widespread adoption.

Layer 2 scaling solution

The Layer 2 scaling (L2 scaling) solution is a technique used to increase the throughput and scalability of a blockchain network by moving some of the processing load off the main chain. The L2 solution operates on top of the primary blockchain layer and enables the execution of a large number of transactions outside the main chain while maintaining the security and integrity of the primary layer.

L2 scaling solutions fall into three main groups:

• State channels

• Sidechains

• Rollups

State channels

State channels are a promising scaling solution for blockchains that allow for off-chain transactions between users. The idea behind state channels is to move the majority of transaction processing off-chain, which reduces the amount of data that needs to be stored on the blockchain, improving its scalability. With state channels, two or more parties can agree to transact with each other without using the blockchain. The parties can establish a channel, which is essentially a private off-chain connection between them. Transactions that occur within this channel are processed off-chain, and only the final state of the transaction is recorded on the blockchain. This means that the blockchain is only used to verify the final state of the transaction, rather than every individual step along the way.