The Scaling Problem

Blockchains face a well-known tension: you cannot simply crank up block size and speed without tradeoffs. Larger blocks demand more bandwidth and storage from every node, which pushes toward centralization and weaker security.

Ethereum's base layer processes roughly 15–30 transactions per second. That is enough for settlement, but not for global-scale app traffic. During peak demand, users bid against each other in the gas market, and simple transfers can cost dollars or more.

The scaling problem is not a failure of Ethereum — it is a consequence of designing a network anyone can verify. Layer 2 is the practical answer: move execution off L1 while keeping Ethereum as the shared security and data layer.