- Layer 2s are extracting users from Ethereum’s mainnet, reducing reliance on its base layer and threatening long-term sustainability.
- Centralization concerns grow as L2s use centralized sequencers, fragmenting Ethereum’s once-strong composability and trustless nature.
- To stay relevant, Ethereum must scale its base layer while preserving decentralization, or risk becoming just a settlement layer.
Ethereum is facing a critical challenge as Layer 2 solutions extract users and value from its base layer. Initially, L2s contributed by paying for data availability (DA) on Ethereum. However, with the introduction of blobs and alternative DA solutions, the reliance on Ethereum’s base layer has diminished. Consequently, Ethereum’s long-term sustainability is at risk. This shift raises concerns about centralization and the erosion of core blockchain principles.
The Effects of Layer 2 Solutions
Layer 2 solutions were once seen as a way to scale Ethereum while maintaining its security and decentralization. However, Currently, they are redirecting users away from the Ethereum mainnet. This trend has become apparent in recent months as L2 stopped heavily subsidizing their DA using alternative storage options. Not to mention, concerns about centralization come alive because most L2s use centralized sequencers, limiting trustless interaction.
Moreover, Ethereum’s once-strong composability is now fragmented. Dapps and users are migrating to different L2 ecosystems, disrupting seamless interoperability. This shift prioritizes token incentives and artificial metric inflation over decentralized network principles. The Ethereum Foundation and key opinion leaders (KOLs) have indirectly facilitated this migration, raising questions about the future of Ethereum’s mainnet.
The Need for Ethereum’s Base Layer Scaling
Ethereum must prioritize scaling its base layer to remain relevant. The network’s current proof-of-stake (PoS) consensus ensures security but does not solve scalability challenges. Every Ethereum transaction competes in a bidding war for validator attention. Gas fees, which depend on gas limits and gas prices, determine transaction processing speed. Consequently, high congestion results in costly transactions and delays.
Hence, Ethereum’s primary challenge is increasing capacity while maintaining decentralization. A network reliant on centralized L2s contradicts the blockchain’s foundational ethos. Scaling should not involve consolidating operations in a single data center. Instead, it must increase the number of network nodes, preserving decentralization and security.
Ethereum’s improvement depends on balancing scalability, decentralization, and security. The rise of L2s has revealed fundamental weaknesses in the mainnet’s design. Unless Ethereum adapts, it risks becoming an underutilized settlement layer. Prioritizing base layer scaling is essential to maintaining its dominance in the blockchain ecosystem.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed