The article discusses the challenges faced by Ethereum and Bitcoin in scaling their networks and accommodating the growing number of users. The use of Layer 2 (L2) solutions, while promising faster transactions and lower fees, poses a threat to the security and economic model of the base layer (L1) blockchains. Ethereum has already witnessed a decline in fees paid to its L1 infrastructure as activity shifts to L2s, raising concerns about long-term sustainability. Bitcoin also faces a similar issue as transactions bypass the main chain, potentially compromising the economic motivation of miners and the network's security. Finding a balance between L1 and L2 activity is crucial for the future scalability and viability of both blockchains.



Other News from Today