Unchained The Chopping Block: Are Layer 2s Stealing Ethereum’s Thunder? - Ep. 484
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Apr 22, 2023 The hosts dive into the rapidly expanding world of Ethereum Layer 2s, tackling their cost implications and user experience. They debate whether these solutions ultimately siphon value from Ethereum and explore the growing security threats within crypto. Discussions also cover the fate of centralized lending and the appeal of stablecoins yielding less than Treasury bills. The potential of tokenizing real-world assets takes center stage, challenging the notion of Layer 1 dominance as they analyze the competitive landscape between various blockchain technologies.
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Tornado Cash Sanctions
- Tornado Cash TVL dropped significantly after sanctions hit in August.
- BNB chain's Tornado Cash deployment wasn't sanctioned, unlike Ethereum's.
L2 Data Posting Costs
- Layer 2s pay significant fees to Layer 1 (Ethereum) for posting transaction data.
- This cost is a key factor in their economics and raises questions about value accrual.
L2s and L1 Value
- Haseeb Qureshi argues against the idea that L2s will steal value from L1s like ETH.
- He points out that ETH's value primarily comes from its monetary properties, which L2s expand.