TL;DR
50% of all Ethereum-based transactions occurred on layer 2’s (L2s) within the first half of 2024, slightly than on Ethereum itself; which has its execs, 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, slightly than on Ethereum itself?
(A minimum of, when it comes to the whole quantity of transactions).
On one hand this can be a signal of nice innovation!
L2s can usually 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 may 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, possibly it’s simply us, however the variety of L2s that’ve been launched on Ethereum feels overwhelming.
And whereas which will assist from a consumer expertise facet of issues, having so many choices can confuse customers and unfold belongings thinly throughout totally different platforms.
Additionally – the massive one – many L2s depend on centralized elements, which works in opposition to all the 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 potential level of failure.
So, whereas innovation and improved consumer 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 expertise.
And that, our mates, is decentralization.
