First–layer solutions – It requires a change in the core features of the main blockchain network. Includes an increase in block size limit or reducing block verification time.
Three popular On-chain scaling solutions
Segregated Witness– SEGWIT is nothing but protocol improvement in the blockchain network using change in the structure of data stored. Removal of signature data for each transition increases the space blockchain network.
Sharding– It is breaking up of blockchains into small and manageable parts known as Shards. Data are stored in shards with certain characteristics when compared with other shards. It helps to improve scalability and reduce latency.
Hard-Fork – refers to structural and fundamental changes in the blockchain network. A hard fork splits cryptocurrency into two which improves storage capacity and improves the number of transactions per second.