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Blockchain scalability is a hot topic. Layer 1 solutions like Ethereum 2.0 tackle network congestion by improving consensus and sharding. Layer 2 solutions, such as Lightning and Optimism, offload transactions to sidechains or rollups. Each has tradeoffs: Ethereum 2.0 enhances security long-term but faces challenges in deployment. Layer 2 offers quick scalability and efficiency but requires trust in new protocols. Understanding these differences is key to navigating the future of blockchain.