As a seasoned investor with roots deeply entrenched in the crypto space, I have witnessed the dynamic evolution of blockchain technology and its ecosystems. The rise of centralized second-layer scaling solutions has been a subject of intrigue and concern for me, especially when it comes to Ethereum (ETH).
According to Justin Bons, founder and CIO of Cyber Capital – Europe’s oldest cryptocurrency fund, the rising prominence of centrally-managed second-layer scaling solutions might erode the inherent value of Ethereum (ETH) due to its excessive centralization
Ethereum (ETH) captured by centralized L2s, Cyber Capital CIO says
second-layer solutions (L2s) should not be considered as mere “expansions” of Ethereum (ETH), because they do not carry its inherent traits, and they have the potential to both misuse and censor users’ assets. This is a point made by well-known cryptocurrency expert Justin Bons in his recent Twitter post
Additionally, it is not likely that any Ethereum Layer 2 solutions will become more decentralized over time because giving up control in this manner would mean forfeiting income generated from managing sequencer nodes
Regarding this matter, Ethereum (ETH) has surpassed the point of no return as its significant Layer 2 solutions are currently generating billions by handling transactions. It’s evident that these income streams will be difficult for them to relinquish
In essence, the overall landscape of L2 (Layer 2) consists predominantly of profit-driven entities, which may have hindered Ethereum’s ability to expand its L1 (Layer 1) in a manner that is both more democratic and embracing of diverse participants
L2 lobby becomes too powerful to overcome, case of Base demonstrates
It appears that your company’s name and specific technical details were not provided. I will need to know if Base was involved in the production or development of Ethereum, and the details of L2 lobby were not specified
According to L2Beat, the Base platform accounts for approximately 17.52% of the total value locked across all Ethereum Layer 2 (L2) solutions. Notably, it has surpassed OP Mainnet to become the second-largest solution in this domain
Eventually, there’s a shift happening in the smart contract sector as developers are increasingly leaning towards more democratically-governed Layer 1 platforms over Ethereum (ETH)
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2024-09-05 19:22