5.2 Multi-Layered Scaling Solution

Multi-layered scaling solutions is designed to address longstanding challenges such as throughput limitations, high fees, and consensus bottlenecks, these solutions integrate enhancements across multiple layers of blockchain infrastructure to improve overall scalability and efficiency.

As of Q1 2025, blockchain platforms such as Ethereum, Bitcoin, and Solana continue to experience performance constraints. Bitcoin processes approximately 4–7 transactions per second (TPS), and Ethereum, despite recent upgrades, averages 15–30 TPS.

In contrast, traditional payment processors like Visa handle over 1,700 TPS, according to Gemini’s Cryptopedia and multiple public benchmarks​Blockchain Technology_ …. The performance gap has pushed developers to adopt a multi-layered approach, blending Layer 1, Layer 2, and in some cases Layer 3 innovations to achieve next-generation throughput targets.

What Is a Multi-Layered Scaling Solution?

A multi-layered scaling solution refers to the combined use of enhancements at different architectural levels of a blockchain system. Instead of relying solely on a single upgrade—such as a Layer 1 protocol shift or a Layer 2 off-chain system—multi-layered scaling approaches coordinate improvements across the base protocol (Layer 1), off-chain processing systems (Layer 2), and application layers (Layer 3 and above).

These layered systems work in parallel:

• Layer 1 handles core consensus, transaction validation, and data availability.

• Layer 2 manages transaction batching, off-chain computation, or payment channels to reduce load on the base chain.

• Layer 3 may include interoperability protocols or application-specific rollups that interface with users and external services.

Technical Components and Examples

1. Layer 1 Upgrades

Layer 1 scaling involves foundational changes to the blockchain protocol. Common methods include:

• Consensus Algorithm Shifts: Ethereum’s 2022 transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS)—known as The Merge—reduced energy consumption and set the stage for higher throughput via sharding and rollups.

• Sharding: As being developed in Ethereum 2.0, this process divides the network state into smaller, manageable pieces (shards), enabling parallel processing. Other blockchains implementing sharding include Zilliqa, Tezos, and Qtum​Blockchain Technology.

• Block Size or Timing Adjustments: Increasing block size or reducing block intervals can improve transaction capacity but may lead to centralization risks.

2. Layer 2 Protocols

Layer 2 solutions are independent systems that execute transactions off-chain and report results back to the Layer 1 chain. These include:

• Rollups: Solutions such as zk-Rollups and Optimistic Rollups bundle thousands of transactions into a single proof sent to the mainnet. Popular implementations include Arbitrum and zkSync.

• State Channels: Two-way communication paths between users that allow multiple interactions off-chain before settling final states on the blockchain. Examples include Lightning Network (Bitcoin) and Raiden Network (Ethereum).

• Sidechains: Independent blockchains like Polygon that interact with the mainnet while operating under their own consensus rules.

3. Layer 3 Extensions

Layer 3 is increasingly referred to as the application layer or interoperability layer. It supports:

• Cross-chain communication (e.g., Cosmos IBC, Polkadot parachains)

• Identity, privacy, or governance modules

• Decentralized applications (dApps) that can abstract complexity while routing workloads to optimal Layer 2 systems

Benefits of a Multi-Layered Approach

Advantage	Impact on Blockchain Networks
Increased Transaction Speed	Layer 2 and 3 systems reduce mainnet congestion
Lower Costs	Offloading computation lowers gas fees per transaction
Enhanced Flexibility	Different scaling tools can be tailored to use-case requirements
Preserved Decentralization	Layer 1 improvements can avoid centralizing validator power
Interoperability	Higher-layer protocols enable cross-chain functionality

A report from Electric Capital (2024) noted that over 75% of active Ethereum dApps have integrated at least one Layer 2 or Layer 3 component, marking a clear shift toward modular, multi-layer design.

Challenges and Considerations

Despite its advantages, multi-layered scaling introduces complexity in terms of development, security, and user experience. Key concerns include:

• Fragmented Ecosystems: Users must navigate between chains, wallets, and bridges—raising risks of user error or exploitation.

• Cross-Layer Security: Vulnerabilities in Layer 2 protocols (e.g., smart contract bugs) could compromise entire applications.

• Standardization and Interoperability: Without consistent protocols, integrating across layers and chains becomes resource-intensive.

Developers are actively addressing these issues through frameworks such as Rollup-as-a-Service (RaaS), zero-knowledge bridging protocols, and universal wallets.

Outlook and Industry Momentum

The shift toward multi-layered scaling is gaining traction in blockchain development roadmaps. Ethereum’s roadmap emphasizes "rollup-centric" architecture, while Solana and Avalanche are exploring parallelized execution engines and subnet-based scaling.

In 2025, multiple projects—including Celestia, Polygon CDK, and EigenLayer—are developing modular frameworks to coordinate security, data availability, and execution across layers. These systems are intended to unlock higher scalability without sacrificing the core principles of decentralization and trustlessness.

According to Gemini’s Cryptopedia, these layered strategies are not mutually exclusive. On the contrary, their combination is emerging as the dominant pattern for blockchain scaling.​

Case Study: BitNet’s Implementation of Multi-Layered Scaling

By integrating Optimistic Rollups, BitNet enhances the performance of decentralized applications (dApps) by offering fast and cost-efficient transactions, which is essential for large-scale blockchain adoption.

This mechanism also plays a critical role in improving cross-subnet communication, allowing seamless interaction between different application-specific subnets, such as those dedicated to DeFi, NFTs, AI computing, IoT, and gaming.

This ensures that each subnet operates efficiently while remaining interoperable with the broader network, eliminating fragmentation and enhancing the user experience.

Furthermore, when combined with the project’s hybrid consensus model, which leverages both Proof of Stake (PoS) and Proof of Useful Work (PoUW), Optimistic Rollups contribute to an advanced multi-layered architecture that optimizes blockchain scalability, security, and usability.

Ultimately, this solution positions BitNet as a next-generation blockchain platform, capable of supporting high-volume applications while maintaining decentralization, affordability, and efficiency.