As Ethereum developers work hard to develop on-chain scaling solutions, including sharding, layer 2 is gaining momentum. According to For 2 housesAs of September 6, all of these layer 2 scaling solutions have managed nearly $34 billion.
Despite their popularity, most of them are not only centralized but also suffer from security concerns. Recently, the OP mainnet was forced to revert to a bug-free centralized system after flaws were discovered in the decentralized version.
Ethereum and its second layer have flaws
In light of these weaknesses, Justin Bones, founder and CTO of Cyber Capital, a venture capital firm, is taking a more aggressive approach to Ethereum, especially its layer-2 platforms. In a post on X, the Cyber Capital founder claims that Ethereum is a digital currency. argue Layer 2 services like Arbitrum and Base are fundamentally flawed and centralized.
Bones takes aim at X, highlighting the shortcomings of Ethereum developers. The founder accuses them of not scaling up immediately after Ethereum launched and how layer 2 solutions have become “parasitic.” Despite their merits, Bones claims that these off-chain solutions create unhealthy dependencies.
Interestingly, the founder continued, Ethereum has become heavily reliant on these solutions, even though they do not adhere to the guiding principles that govern blockchain: decentralization.
Venture capital is convinced that Ethereum Layer 2 is exploiting the popularity of the mainnet not to boost its adoption but to make a profit.
Their decision to sacrifice decentralization (and therefore security) will only undermine the entire ecosystem. In his opinion, platforms like Base, Arbitrum, and OP Mainnet should not be considered “extensions” of the base layer due to their inherent weaknesses.
Dash will benefit from decentralization from the start.
While Bones has criticized Ethereum and its dominant scaling options, the founder has backed Dash, one of the oldest blockchain platforms. In contrast to off-chain solutions, Dash, a venture capital firm, backs Ethereum. He saidsetting priorities from the start.
Specifically, Boons also made the decision to opt for a decentralized governance approach to blockchain. The founder added that their move will “benefit” them in the coming days.
However, despite the challenges facing layer 2, Ethereum developers are working to improve the mainnet. Ethereum 2.0 will provide on-chain scalability without sacrificing security and decentralization in a series of upgrades, from Verge to Splurge.
At the same time, the approval of Ethereum spot ETFs is a major endorsement of the network. While the SEC has yet to publicly endorse Ethereum as a commodity, like Bitcoin, the Commodity Futures Trading Commission does.
Despite being one of the oldest platforms, Dash has been disappearing in recent years. It is outside the top 100 most valuable networks and faces liquidity challenges after being delisted from some centralized exchanges like HTX.
Featured image from Canva, chart from TradingView