Widespread understanding of L2 scaling tradeoffs is critical, here's an ELI5.
With numerous L2 solutions coming online, there's a very clear need for the industry to begin having open, widespread discussions around the tradeoffs that we're making by choosing one solution versus another. These decisions have consequences, and unfortunately, it's not enough for projects alone to understand the difference at this point in time; early adopters must as well.
It should be disclosed that I work for [Immutable](https://immutable.com/), who is developing a ZK Rollup scaling solution for NFTs. We've tried to eliminate bias in this post and be clinical in describing the differences between all solutions, but I encourage everyone to do their own research and engage in thoughtful discussion. This post is also centered around NFTs, but is equally applicable to other tokens.
Everyone who uses, mints or trades NFTs on Ethereum knows that scaling is the key challenge facing the industry right now. The uniqueness of NFTs, a key part of their desirability, is also the very thing that makes them expensive and illiquid to trade on a blockchain with a limited capacity. Many teams are working extremely hard to give players and studios what they want: scalable, instant, and trustless minting and trading of NFTs. The purpose of this post is to help users and developers compare and contrast the various scaling strategies that have been proposed and built. The properties of these solutions usually have a direct impact on the security of your assets: **if you’re an NFT holder, it's important to understand where they are being stored!**
# Alternative Blockchains (Tron, Flow, EOS)
Alternative blockchains, which make different design decisions to ETH to prioritize throughput, are commonly proposed scaling solutions. This includes projects like Tron and EOS, which support general-purpose applications, as well as projects like Flow, which are targeting NFTs specifically. In general, the blockchain trilemma still applies: the only fundamental scaling boosts come from a re...
In another win for the adoption of blockchain technology and cryptocurrencies, the Central Bank of Portugal (Banco de Portugal) has officially announced that they will begin approving licenses for cry...