High transaction fees are often the result of network congestion. When many users compete to include transactions in limited block space, fees rise. This is not a flaw unique to blockchain but a reflection of supply and demand. Feed markets help prioritize transactions but also highlight the need for scalable infrastructure. Understanding this dynamic explains why scaling solutions continue to evolve.
Layer 1 Blockchains are base networks such as Bitcoin or Ethereum. They prioritize security and decentralization but often struggle with scalability. Layer 2 solutions are built on top of Layer 1 networks to process transactions more efficiently. By handling off-chain activity and settling results later, Layer 2 systems reduce congestion and fees while maintaining security. Together, they form a complementary architecture rather than competing layers.
Decentralization is often discussed as a binary concept, but in reality, it exists on a spectrum. Some networks distribute control across thousands of nodes, while others retain decision-making power within a small group. Factors like governance structure, validator distribution, and upgrade processes all influence how decentralized a system truly is. Understanding this spectrum helps explain why different blockchains make different trade-offs between speed, security, and control.
How Blockchain Achieves Trust Without a Central Authority
Blockchain replaces trust in institutions with trust in mathematics. Instead of relying on a single authority, transactions are verified by a distributed network using cryptography and consensus mechanisms. This structure reduces manipulation, increases transparency, and enables decentralized systems to function securely at scale.