state-pools

Following the need for scalability in the Ethereum network, quite a number of solutions were propped up and worked on, this birthed a wide stream of layer 2 protocol designs. Each working based on a governing set, and Nahmii utilizes a mix of these components to create its unique state pool technology.

State Channels

To understand state pools, a quick understanding of state channels is necessary. State Channels are two-way payment pathways, usually offline, away from the base layer. These gateways rely on the use of a multisig wallet that holds funds on the base layer, individuals participating in this setup makes use of their private keys to verify the transactions.

Typically, these transactions are fast and cheap as it also features micropayments perfect for commercial use.

State Pools

State pools is a hybrid approach to scaling as it consists of similar security models from other side chain systems developed. This hybrid approach allows Nahmii to inherit good qualities of these systems (both of State channels and roll-ups) whilst cancelling out the negatives from these.