System layer scaling refers to increasing the capacity and performance of a blockchain network by enhancing its underlying structure. This involves optimizing how transactions are processed, stored, and distributed across the network.There are two main approaches to achieve system layer scaling: on-chain scaling and off-chain scaling. On-chain scaling focuses on making changes directly to the blockchain itself. This can include increasing block sizes or optimizing consensus algorithms to process more transactions per second without sacrificing security or decentralization.Off-chain scaling involves solutions that operate outside the main blockchain, allowing transactions to occur without congesting the main network. Examples include payment channels and sidechains, where transactions are settled off the main chain and periodically recorded back to it.Both approaches aim to make networks more efficient and capable of handling a larger volume of transactions, thus improving user experience and enabling broader adoption.