# Privacy and Scalability in Blockchain **The Need for Privacy** Privacy is a fundamental aspect of blockchain technology. While public ledgers provide transparency, they also expose sensitive information. BlackCoal addresses this need for privacy by implementing advanced cryptographic techniques. **Scalability Challenges** Ethereum, like many other blockchains, faces scalability challenges due to network congestion and high gas fees. Layer 2 solutions offer a way to scale while maintaining the security of the Ethereum mainnet. **Layer 2 Solutions** BlackCoal leverages Layer 2 technology, specifically Optimistic Rollups, to achieve scalability. This allows for faster and more cost-effective transactions while benefiting from Ethereum's security. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://blackcoal-erc.gitbook.io/blackcoal-docs/blackcoal-overview/privacy-and-scalability-in-blockchain.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.