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24min chapter
Bitcoin's 2024 Revolution: L2s & Beyond | Eric Wall
Bankless
Challenges and Complexity in Layer Two Solutions
The chapter delves into the challenges and complexities related to the capital requirements, liquidity crunch, and participant constraints within a certain operational model. It discusses inefficiencies of high capital reserves, risks of fractional reserves, and delays in addressing liquidity issues, contrasting existing side chains with newer approaches in the Bitcoin L2 space.
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