Experts Spoke About the Future of Ethereum due to L2 solutions

Ethereum

Experts Spoke About the Future of Ethereum due to L2 solutions

Ye Zhang, co-founder of L2 network Scroll, and Kain Warwick, founder of Synthetix and Infinex projects, said L2 solutions are a threat to the future of Ethereum.

Ye Zhang said that imposing tariffs on L2 solutions is one of the most harmful ideas for Ethereums future. In his opinion, it will have negative consequences in the long run despite generating short-term revenue.

According to him, the more rollups, the wider the use of Ethereum, which strengthens its status as a means of preserving value. In addition, the expert predicted two possible scenarios of ecosystem development:

• Ethereum becomes a means of value preservation and an economic center for an ecosystem of 1,000 rollups, where it remains the main asset;
• Ethereum chooses greed, imposes taxes on L2 solutions, forcing them to use alternative storage solutions. Ethereum loses its relevance, does not solve the scalability problem and eventually fails.

He summarized that the project should not squeeze out profits, but should stimulate development.

Kane Warwick, founder of Synthetix and Infinex, talked about the Ethereum margin problem and its solution.

According to the analyst, the project is losing its profitability due to the development of L2 solutions. According to him, the assets dominance in blocks previously allowed it to maintain a high level of combustion.

However, this has changed as L2 networks have become cheaper and have taken advantage of this by redirecting a significant portion of potential Ethereum burn into their own revenues, Warwick added.

The expert said Ethereum now faces the fundamental question of restoring profitability.

However, Vorik noted that Ethereum has proven time and time again that it can solve such “coordination challenges.” According to him, now there is hope for the trend of asset tokenization, which is gaining momentum. The expert believes that if the project is a leader in the tokenization sector, the demand for blockchain will increase and the problem of low margins will disappear.