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The Best of Bell Curve

Bell Curve

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Navigating Layer 1 and Layer 2 Solutions in Blockchain

This chapter examines the design choices between Layer 1 and Ethereum Layer 2 solutions, focusing on backward compatibility and the need for custom execution environments in decentralized trading. It highlights trends in vertical integration among decentralized exchanges and the economic strategies of centralized exchanges regarding stablecoins, emphasizing the importance of collaboration and innovation in the financial ecosystem.

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