This chapter delves into the dynamics between Layer 1 and Layer 2 blockchain systems, emphasizing their impact on transaction costs and overall performance with a focus on Bitcoin and Ethereum. It also discusses the challenges Ethereum faces in sustaining its value proposition in a competitive landscape, alongside the strategic role of Layer 2 solutions.
SOL/ETH is up 300% YoY and ETH/BTC is down 50% over the last 2 years. Why is that? Why is ETH underperforming so bad?
Kyle Samani is the Managing Partner & Co-Founder at Multicoin Capital. Kyle and Multicoin have been one of the largest investors and proponents of Solana. They have been spearheading the ‘integrated blockchain’ investment theses even before the success of Solana redefined that corner of crypto.
This episode is not intended to be a debate like the Anatoly vs Justin Drake one. Ryan and David are mostly going to sit back and hear Kyle’s perspective and reasoning as to why ETH has been down so bad in this crypto cycle. Enjoy!
0:00 Intro 5:40 Ethereum in a Vacuum 10:10 ETH Vs. BTC 25:50 Broken Layer2 Interoperability 34:46 Value Capture 51:46 What Needs to Change 55:23 Decentralization 1:06:34 Solana 1:12:25 Steelmanning Ethereum 1:17:49 Closing & Disclaimers