As a seasoned analyst with years of experience observing and dissecting the crypto space, I find Elena Sinelnikova’s insights about Ethereum layer-2 networks particularly insightful. Her emphasis on the need for decentralized sequencers to ensure anti-fragility and censorship resistance in L2 solutions resonates deeply with my belief that decentralization is key to the success of any blockchain project.
In my role as an analyst, I’ve noticed that the Ethereum layer-2 (L2) landscape is swiftly growing, accommodating a significant portion of the day-to-day transactions on the Ethereum blockchain. However, the issue of centralization remains a concern in this expansion.
In simpler terms, Elena Sinelnikova, a co-founder at Metis L2, suggested to CryptoMoon that for optimal robustness against disruptions (anti-fragility) and censorship resistance in layer-2 scaling solutions, it would be beneficial to integrate decentralized sequencers.
As per Sinelnikova’s explanation, the majority of layer-2 networks operate with a single sequencer, and many users are often unknowing participants on centralized platforms which hold the power to be managed or shut down at will. The Metis co-founder shared this insight in an interview with CryptoMoon.
“About 97% of all Ethereum transactions are on layer-2s — so basically almost all of them. Layer-2 solutions were never meant to be decentralized solutions. They are centralized solutions with one sequencer.”
Additionally, Sinelnikova discussed suggestions from the Ethereum Foundation regarding strengthening L2 interoperability to foster decentralization as an alternative to the existing model of isolated L2 solutions. However, the co-founder of Metis contended that implementing decentralized transaction validators (sequencers) would be a more straightforward approach.
Ethereum layer-2 networks continue to grow
The Metis co-founder expects the number of layer-2 scaling solutions to continue growing in 2025, and recent developments in the Ethereum layer-2 ecosystem seem to suggest this is the case.
By October 2024, the co-creator of Ethereum, Vitalik Buterin, has revealed plans to boost its capacity to handle around 100,000 transactions every second. This ambitious target forms part of a long-term plan for Ethereum, which is called “The Surge.
The Surge aims to promote compatibility among Ethereum’s layer-2 platforms, striving for a combined transaction processing speed of 100,000 transactions per second (TPS) between the Ethereum main layer and its layer-2 networks.
In November 2024, Layer-2 networks recorded about three times more daily transaction data compared to March 2024. This heightened activity led to a surge in fees on the Ethereum main network, which in turn contributed to a reversal of low Ethereum earnings that had been ongoing for several months.
Based on figures from L2Beat, it’s clear that the Total Value Locked (TVL) within Ethereum Layer 2 solutions reached a staggering $51.5 billion in November alone. Remarkably, this represents an impressive 205% increase compared to the same period last year.
By early December 2024, that amount had ballooned past $60 billion. The decentralized finance platforms Arbitrum One and Base were primarily responsible for this growth, with approximately $21.5 billion and $14.2 billion respectively, locked in their systems, signifying the total value they were holding at the time.
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2024-12-07 20:21