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25min chapter
Who Are The Real Users In Crypto? | Mert Mumtaz, Dan Smith
Lightspeed
Navigating the Complexity of Layer 1 and Layer 2 Solutions in Crypto Space
The chapter delves into the trade-offs between Layer 1 (L1) and Layer 2 (L2) solutions in Bitcoin and Ethereum, emphasizing the need to optimize the base layer before scaling up. It discusses challenges like complexity and fragility of dependencies between layers, the evolution of L2 solutions, and the impact of new roll-ups on user experience. The conversation explores issues in connecting different chains, the importance of trust assumptions in decentralization, and skepticism towards smaller rollups in handling high activity efficiently.
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