How do layer 1 crypto projects improve blockchain scalability?

1 answers

• MordredMooseMar 16, 2025 · 4 months ago
  At BYDFi, we believe that layer 1 crypto projects play a crucial role in improving blockchain scalability. One way they achieve this is through the implementation of innovative consensus mechanisms like Directed Acyclic Graphs (DAGs). DAG-based projects, such as IOTA or Nano, offer high scalability and low transaction fees by allowing multiple transactions to be processed simultaneously. Another approach is through the use of advanced network protocols, such as the InterPlanetary File System (IPFS), which enables decentralized and efficient storage of data. Additionally, layer 1 projects can collaborate with other blockchain networks and exchanges to establish interoperability protocols, facilitating seamless communication and scalability across different platforms. These efforts contribute to the overall improvement of blockchain scalability and the advancement of the decentralized ecosystem.
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