TL;DR
50% of all Ethereum-based transactions occurred on layer 2’s (L2s) within the first half of 2024, quite than on Ethereum itself; which has its professionals, and its cons.
Full Story
Do you know that over 50% of all Ethereum-based transactions occurred on layer 2’s (L2s) within the first half of 2024, quite than on Ethereum itself?
(A minimum of, by way of the overall quantity of transactions).
On one hand it is a signal of nice innovation!
L2s can typically deal with extra transactions at a decrease price, making Ethereum-based transactions cheaper and sooner for everybody.
By transferring transactions off the primary Ethereum chain, L2s can even assist make the entire community run smoother by lowering congestion.
BUT – earlier than we get too enthusiastic about Ethereum palming off half of it’s transactions over to different Ethereum-based chains, there’re dangers to L2s too.
For instance, look, perhaps it’s simply us, however the variety of L2s that’ve been launched on Ethereum feels overwhelming.
And whereas that will assist from a person expertise facet of issues, having so many choices can confuse customers and unfold belongings thinly throughout totally different platforms.
Additionally – the large one – many L2s depend on centralized elements, which matches towards the whole decentralized worth prop of Ethereum.
Take sequences for instance (they’re the issues that determine the order of transactions to be processed in, earlier than they’re processed).
If a single, centralized entity controls the sequencer, that introduces a crucial central level of management and a doable level of failure.
So, whereas innovation and improved person experiences are nice for web3, right here’s hoping the unimaginable groups constructing L2s don’t lose sight of the unique worth prop of blockchain know-how.
And that, our mates, is decentralization.
