Endgame for Ethereum (ETH) Indicated by Paradigm’s Former Andrew Huang

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As a researcher with a background in blockchain technology and decentralized systems, I strongly agree with Andrew Huang’s perspective on Ethereum’s (ETH) endgame goal. Huang’s emphasis on maximizing decentralization and ensuring that L2s can inherit the same level of decentralization as L1 is a crucial aspect for the long-term success of the Ethereum network.

According to Andrew Huang, the founder of Paradigm-supported Conduit platform, he is confident that Ethereum‘s L2s (Layer 2 solutions) can achieve Ethereum’s current level of decentralization at a lower cost. He strongly believes that this is the ultimate goal for Ethereum (ETH), emphasizing its significance as an entrepreneur.

“Native currency of Internet”: Andrew Huang on Ethereum’s (ETH) endgame goal

To achieve the objective of being a maximally decentralized public good, Ethereum (ETH), the leading platform for smart contracts, should strive for this goal. In turn, all its Layer 2 solutions ought to replicate the same degree of decentralization in an economical way.

Ethereum’s ultimate goal is to function as a decentralized public asset, fostering a thriving ecosystem of L2 solutions and beyond, while maintaining affordability. Artificial constraints that hinder innovation or prioritize maximizing fees for L1 are, in my opinion, misguided.

— Andrew Huang ⚡️⛓️ (@KAndrewHuang) July 1, 2024

Simultaneously imposing artificial limitations on L1-L1 interactions or prioritizing high transaction fees for L1 nodes might be overlooking potential benefits for Huang.

As a researcher studying the cryptocurrency market, I believe Ethereum (ETH) holds the greatest potential due to its role as the native currency of the internet.

In reaction to Georgios Konstantopoulos’ assessment at Paradigm, I noted Huang’s tweet. Konstantopoulos emphasized that imposing market structures and excessive contemplation may hinder the development of L2 networks. Rather than focusing on these aspects, he suggested prioritizing networks’ upgradeability and accessibility. Interoperability, according to him, remains a seemingly fabricated concern.

As a researcher studying the intricacies of blockchain technology, I would propose that Ethereum’s Layer 1 (L1) functions as a data availability layer for Ethereum Virtual Machine (EVM) networks, according to the CTO of Paradigm. In simpler terms, Ethereum’s primary layer serves as the foundation for storing and making data accessible to EVM networks.

Arbitrum (ARB) loses L2 dominance, TVL share dips below 40%

I’ve analyzed the current market situation, and Ether (ETH) is presently being traded at a price of $3,462, marking a 2% increase over the past 24 hours. Notably, trading volume has experienced a significant surge, climbing by 57%, and it now stands above $10 billion based on data from CoinMarketCap.

As a crypto investor, I’ve noticed that the total value locked in USD terms within Ethereum’s Layer 2 (L2) ecosystem has experienced a decline over the past month. According to L2Beat, this figure dropped from $49.3 billion to $42.1 billion.

As a researcher examining the decentralized finance (DeFi) landscape, I’ve noticed that Arbitrum (ARB), which previously held an uncontested lead in terms of Total Value Locked (TVL), has experienced a significant decline. Its dominance has dropped below the 40% mark, leaving room for its closest competitor, Base (BASE), to almost surpass it with approximately 17% TVL.

The OP Mainnet aims to maintain a value above $15 billion, whereas Blast (BLAST), the latest noteworthy development, contributes approximately 6.9% to the total value locked in Ethereum’s Layer 2 (L2) ecosystem.

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2024-07-01 17:47