Ethereum L2 Networks : Only Few L2-Altcoins Will Survive in Next 5 Years
The post Ethereum L2 Networks : Only Few L2-Altcoins Will Survive in Next 5 Years appeared first on Coinpedia Fintech News
In the ongoing debate involving the evolution of Ethereum layer 2 blockchains, Kenny Li, co-founder of Manta Pacific, argues that Ethereum layer 2 networks must adopt a “modular” approach for long-term viability in the changing blockchain landscape. He believes that many of the existing layer 2 networks may not last five years, focusing on the importance of adaptability and flexibility in blockchain development. Li’s insight has sparked debate about the future direction of Ethereum layer 2 solutions.
Li Calls Layer 2 Networks a New Gen Innovation
In a recent interview, Li explained his concept of modularity which involves breaking down blockchain tasks into separate components for easy integration and evolution.
He started his argument with L2Beat reports which show that only 44 active Ethereum L2 networks are there with $36.92 billion in total value locked (TVL), with Arbitrum leading with $14.5 billion.
This shows that only a few networks like Manta, Celestia, and Cosmos follow this approach. He says it’s like when people tried to make “better” versions of Bitcoin and Ethereum, but those didn’t work out. These new blockchains are called “modular,” meaning they’re flexible and can change easily.
Li thinks this is important because old versions of Bitcoin and Ethereum didn’t allow for quick changes. So, only the ones that can adapt will survive. It’s like building with LEGO – you can change things easily. But others say arguing about how blockchains are built isn’t important.
“modular vs. monolithic” -It’s Complicated!
However, some argue that the modular vs. monolithic debate is purely a “marketing stunt.” According to Solana Foundation spokesperson Austin Federa, these classifications oversimplify blockchain design and could cover up basic issues. He adds that black-and-white thinking ignores the complex trade-offs involved in blockchain design and construction.
Notably, Li’s case is similar to previous attempts to split Bitcoin and Ethereum, showing how one-size-fits-all solutions aren’t always good for innovation and growth. He says that Ethereum’s strength and dominance come from its modular design, which lets it change quickly and meet changing user needs well.
Moreover, Federa warns against seeing modular and monolithic methods as completely different ways of doing things. Instead, he wants a more complex view that takes into account the different architectural options blockchain developers have. While comparing both he said that Modular designs are better for being flexible, but monolithic designs may be better for some uses because they are simpler and more efficient.
The discussion highlights how blockchain development is always evolving, trying to find the right balance between new ideas and reliability. Whether modularity becomes the main way to build blockchains is still up in the air. But talking about these ideas helps us learn more about how blockchains work and what they might look like in the future.
Read More
Ethereum L2 Networks : Only Few L2-Altcoins Will Survive in Next 5 Years
The post Ethereum L2 Networks : Only Few L2-Altcoins Will Survive in Next 5 Years appeared first on Coinpedia Fintech News
In the ongoing debate involving the evolution of Ethereum layer 2 blockchains, Kenny Li, co-founder of Manta Pacific, argues that Ethereum layer 2 networks must adopt a “modular” approach for long-term viability in the changing blockchain landscape. He believes that many of the existing layer 2 networks may not last five years, focusing on the importance of adaptability and flexibility in blockchain development. Li’s insight has sparked debate about the future direction of Ethereum layer 2 solutions.
Li Calls Layer 2 Networks a New Gen Innovation
In a recent interview, Li explained his concept of modularity which involves breaking down blockchain tasks into separate components for easy integration and evolution.
He started his argument with L2Beat reports which show that only 44 active Ethereum L2 networks are there with $36.92 billion in total value locked (TVL), with Arbitrum leading with $14.5 billion.
This shows that only a few networks like Manta, Celestia, and Cosmos follow this approach. He says it’s like when people tried to make “better” versions of Bitcoin and Ethereum, but those didn’t work out. These new blockchains are called “modular,” meaning they’re flexible and can change easily.
Li thinks this is important because old versions of Bitcoin and Ethereum didn’t allow for quick changes. So, only the ones that can adapt will survive. It’s like building with LEGO – you can change things easily. But others say arguing about how blockchains are built isn’t important.
“modular vs. monolithic” -It’s Complicated!
However, some argue that the modular vs. monolithic debate is purely a “marketing stunt.” According to Solana Foundation spokesperson Austin Federa, these classifications oversimplify blockchain design and could cover up basic issues. He adds that black-and-white thinking ignores the complex trade-offs involved in blockchain design and construction.
Notably, Li’s case is similar to previous attempts to split Bitcoin and Ethereum, showing how one-size-fits-all solutions aren’t always good for innovation and growth. He says that Ethereum’s strength and dominance come from its modular design, which lets it change quickly and meet changing user needs well.
Moreover, Federa warns against seeing modular and monolithic methods as completely different ways of doing things. Instead, he wants a more complex view that takes into account the different architectural options blockchain developers have. While comparing both he said that Modular designs are better for being flexible, but monolithic designs may be better for some uses because they are simpler and more efficient.
The discussion highlights how blockchain development is always evolving, trying to find the right balance between new ideas and reliability. Whether modularity becomes the main way to build blockchains is still up in the air. But talking about these ideas helps us learn more about how blockchains work and what they might look like in the future.
Read More