Exploring the Value Dynamics Between Ethereum and Layer 2 Solutions

This chapter explores the interplay between Ethereum and its Layer 2 solutions, highlighting the importance of value capture and creation. The discussion emphasizes the need for Ethereum's involvement in developing these solutions to ensure it benefits from the value generated.

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Martin Köppelmann, co-founder of Gnosis, has proposed that Ethereum should have native rollups—a vision aimed at addressing scalability and decentralization.

Köppelmann critiques the current state of layer 2 solutions, highlighting their limitations in fully inheriting Ethereum’s security and composability.

He proposes a bold alternative: 128 Ethereum-native rollups designed to expand block space, strengthen alignment with Ethereum’s core principles, and ensure long-term viability for developers and users.

Plus, Martin tackles the controversies: Are L2s parasitic? Could native rollups spell the end for existing solutions? And why should they rely on zero-knowledge proofs instead of Optimism?

Show highlights:

Whether the Ethereum scaling roadmap is accomplishing its goals
Why based rollups are not a full solution, according to Martin
What Martin proposes instead
Why Martin is proposing these rollups to be ZK-rollups instead of optimistic
Whether the proposed solution would focus on privacy
What it is about chain abstraction that Martin doesn’t like
How he envisions that these native rollups will solve many composability issues across L2s
Whether the community has embraced this proposal and how likely it is to be implemented
What would happen to current L2s if native rollups get implemented
Why despite being against the current state of L2s, Martin says that they are not parasitic to Ethereum

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