Whitepaper
  • Introduction
  • Problem Statement
  • Solution
    • Specialized Application Areas
      • Secure Web3 Wallet Application
      • Decentralized Professional Network and Work Platform
      • Fast and Secure Ramp System
    • Conclusion
  • Technology
    • Blockchain Infrastructure and Layered Architecture
    • Smart Contract Infrastructure and Automation Mechanisms
    • Decentralized Identity (DID) and Security Mechanisms
    • Fast and Secure Ramp System Infrastructure
  • Tokenomics
    • Token Use Cases and Functionality
    • Token Supply and Distribution Model
    • Deflation Mechanisms and Token Burning (Burning Mechanism)
    • Governance and Decentralized Voting Mechanism
    • Ecosystem Incentives and Sustainability Model
    • Conclusion
  • Use Cases
    • Secure Web3 Wallet Usage
    • Decentralized Professional Network and Job Platforms
    • Fast and Secure Fiat-Crypto Ramp System
    • Smart Contract-Based Financial Services
    • Conclusion
  • Risks and Mitigation Strategies
    • Security Risks & Mitigation Strategies
    • Scalability & Network Congestion Risks
    • Regulation & Legal Compliance Risks
    • Market Volatility & Liquidity Risks
    • Conclusion
  • Conclusion
Powered by GitBook
On this page
  1. Risks and Mitigation Strategies

Scalability & Network Congestion Risks

Risk: High network usage can result in increased gas fees and transaction delays, adversely impacting the user experience.

Risk Factors:

  • Limited transaction capacity of Layer-1 networks

  • High gas fees due to network congestion

  • Dependencies on Layer-2 solutions and scalability limitations

Mitigation Strategies:

  • Layer-2 Integrations: Solvex integrates Optimistic Rollups, ZK-Rollups, and State Channels to reduce transaction costs and scale the ecosystem effectively.

  • Off-Chain Computations & Batch Processing: Off-chain transaction verification reduces gas fees, while batch processing mechanisms enable multiple transactions to be processed in a single block, improving scalability.

  • Cross-Chain Bridges: To avoid congestion, Solvex utilizes decentralized bridge mechanisms that optimize cross-chain transactions, alleviating traffic issues on a single blockchain.

PreviousSecurity Risks & Mitigation StrategiesNextRegulation & Legal Compliance Risks

Last updated 1 month ago