At the #Nervos deep dive in Palo Alto. Secure, Decentralized consensus is necessary slow. The solution to scaling is to decrease the demand for consensus by moving normal operations to layer 2.
Nervos also uses Nakamoto Consensus to optimize network bandwidth usage. It will have a way to not repeat transaction twice, when initially broadcast from users to miners, then broadcast as mined blocks from miners to users.
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The real bottleneck of the decentralized network is the network bandwidth required to maintain a wide consensus.
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On-chain state design makes transaction dependencies very explicit. Jan claims this will be friendly to future sharding designs.
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