Skip to main content

Solana Co-Founder Challenges Layer 2s—Are They Even Needed?

The co-founder of a popular cryptocurrency took a swipe at Layer-2 cryptos, claiming that these rollups are only redundant and make blockchain scaling more complicated.

Anatoly Yakovenko, co-founder of the Solana network, argued that Layer-1 solutions are sufficient without Layer-2 tokens which do not offer genuine, long-term benefits.

Layer-2 Not Needed?

Yakovenko said in an X post that Layer-2 cryptocurrencies are unnecessary and only add unnecessary complexity to blockchain scaling.

“There is no reason to build an L2,” Yakovenko said in a post, which is the Solana co-founder’s response to @ripdoteth, who claimed that there is no reason to build a Layer-1.

The crypto co-founder argued that Layer-1 solutions, like the Solana network, can already offer efficient, cheap, and secure scaling solutions. Hence, he said that Layer-2 tokens are only providing redundancy.

“They aren’t slowed down by a glacially moving L1 data availability stack, or have to compromise security with complex fraud proofs and upgrade multisigs,” he explained.

He added that Solana does not encounter these kinds of problems since it has separate execution and data layers on an efficient base layer.

Storage Issues

Yakovenko described Solana’s data generation as tiny at 80 terabytes annually, saying that Layer-1 cannot scale because they are hindered by storage.

“Solana generates a measly amount of data. Like 80TB per year so far. It’s just not enough data to build a business around, but too much for any individual to easily store,” Yakovenko said.

The crypto co-founder told users not to create baseless Layer-2 cryptocurrencies, saying early this month, “You can skip creating a valueless L2 and just launch a token.”

When asked about Solana’s plan on offloading unused storage, he responded that the ledger is going on “filecoin or whatever decentralized storage provider wants it.”

Some Do Not Agree

Several crypto investors disagree with Yakovenko, arguing that Layer-2 solutions are necessary.

“L1s can’t scale to accommodate 8 billion global users. L2s are needed no matter which chain you see leading the way. And they can be faster, cheaper, more secure, interoperable, specialized to use case, localized or decentralized, evolve fast or ossify,” @RuzhyoX commented on Yakovenko’s post.

The Solana co-founder replied that Layer-1 can accommodate 8 billion users, saying, “8 billion * 3 txs per day is sub 300k tps. That fits in under 1gbps of block throughput for 400 byte txs.”

He argued that Solana’s design allows it to compete with every Ethereum Layer-2 solution directly, which is not the case with Ethereum itself. “There is no point to multiple L2s … if a single L2 can handle parallel execution, then it can use up all the blobspace and run every use case.”

Featured image from Gemini Imagen, chart from TradingView



from Bitcoinist.com https://ift.tt/NQjkZgO
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more