10min chapter

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Credible Commitments: How Pre-Confirmations Unlock L2 Interoperability | S7 E6 | Jonas & Murat

Bell Curve

CHAPTER

Decentralization, Regulatory Challenges, and Layer 2 Solutions

Exploring the complexities of regulatory motivations in decentralized finance, this chapter discusses challenges faced by projects like Circle's USDC and CFTP protocol. Delving into the decentralization of Ethereum and layer 2 solutions, the debate focuses on the necessity and drawbacks of further decentralization. Additionally, the importance of pre-confirmation in network efficiency and the implications of introducing blobs are analyzed, along with the pros and cons of centralized sequence orders in the context of cost, liveness, and value capture.

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