Blockchain technology, while transformative, suffers from critical challenges related to scalability and energy consumption. This project aims to address these issues by developing novel methodologies for improving the energy efficiency and transaction throughput of decentralized systems. By focusing on Layer 2 solutions and energy-efficient consensus algorithms, this research seeks to optimize blockchain networks' performance, enabling them to handle higher transaction volumes while reducing environmental impact. The project will involve both theoretical modeling and empirical case studies, focusing on blockchain systems commonly used in sectors such as healthcare and supply chain management. The anticipated outcome is a set of scalable, sustainable frameworks and algorithms that can be implemented in various blockchain applications without requiring access to sensitive data. The findings will have broad applications in enhancing the performance and sustainability of blockchain systems worldwide.