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March Roundup: Memecoins, BlackRock, L3s, and Other Trends | EP 44
Good Game
Analysis of Blockchain Bottleneck and Layer Two Execution
The bottleneck in the blockchain currently is not the block space, but the execution of layer two solutions like Base and Optimism, which do not utilize parallel execution. While base transactions have increased significantly, this has led to high load on the execution environment. Additionally, the total transactions per second (TPS) across all Ethereum layer twos combined is one order of magnitude lower than Solana. Ethereum layer twos are less decentralized than Solana, using single sequencers which are not permissionless. Decentralizing a sequencer set can increase latency and coordination challenges, indicating the importance of carefully considering the trade-offs involved in decentralization.
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