Abstract
With extensive research and development in blockchain technology, the concern about scalability, security, and decentralization is still evident. Blockchain trilemma describes that it is realistically impossible to simultaneously achieve a high level of decentralization, security, and scalability. However, new developments in the sector of blockchain are making progress in simultaneous achievement of these three aspects. Layer 1 blockchain is the base level of blockchain network architecture. It includes blockchain networks like Bitcoin, Ethereum, etc. However, the Layer 1 blockchain network faces scalability issues. Layer 2 blockchain is a network built on top of Layer 1 blockchain to help eliminate scalability issues. This paper presents a comparative analysis of Layer 1 and Layer 2 blockchain networks and different approaches to solving the blockchain trilemma in Layer 1 and Layer 2 blockchain networks. From the study, we found that Layer 2 blockchain networks are easier and faster to implement.