The surge of recognition of centralized second-layer scaling options threatens authentic Ethereum (ETH) values as they’re too centralized, explains Justin Bons, founder and CIO of the oldest European crypto fund, Cyber Capital.
Ethereum (ETH) captured by centralized L2s, Cyber Capital CIO says
L2s shouldn’t be handled as “extensions” of Ethereum (ETH), as they don’t inherit its qualities, and they can each steal and censor customers’ funds. This assertion was shared by famend cryptocurrency professional Justin Bons in his current X thread.
Moreover, none of Ethereum’s L2 has an incentive to get decentralized over time, as this step will sacrifice the income from operating sequencer nodes.
On this regard, Ethereum (ETH) has already crossed the Rubicon with its main L2s making billions for broadcasting transactions, and naturally, they’re unable to lose this income stream.
As such, your complete L2 ecosystem is a conglomerate of for-profit firms that ruined the alternatives for Ethereum to scale its L1 in a extra decentralized and inclusive method.
L2 foyer turns into too highly effective to beat, case of Base demonstrates
Bons signifies the rising significance of the L2 foyer. The success of Base, a Coinbase-linked Ethereum L2, is the perfect demonstration of what might be achieved by this way of scaling.
As per L2Beat, Base is answerable for 17,52% of all Ethereum L2s’ TVL. It managed to exchange OP Mainnet because the second largest answer right here.
Lastly, Ethereum (ETH) is likely to be dropping its dominance within the sensible contracts section as builders transfer to extra democratic L1s.
