Vitalik Buterin has a different opinion about layer 2 scaling.
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“Honestly, even though L2 concepts have become more complex, our confidence in the simplified L1 has decreased by a factor of three,” says Vitalik Buterin.
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Ethereum is one of the largest blockchains and over 100 projects are using it.
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The overall cryptocurrency market capitalization is giving encouraging signs. Its market capitalization has surged more than 10% in the past 30 days.
Ethereum co-founder Vitalik Buterin shared concerns about layer 2 scaling solutions. He wrote in his ‘X’ on February 22 about the potential risks associated with complex Layer 2 networks.
Buterin argued for a more balanced approach to blockchain ecosystem development. There is a belief in the cryptocurrency market that the more L1 is protected, the less future risk there is. However, the main complex functions belong to layer 2, which is designed to increase reliability.
Buterin, responding to Salvatore Ingala, wrote: “Honestly, I have about three times less confidence in simplified L1 than I did five years ago, even at the expense of more complex L2 concepts. The problem is that when you can make a trade-off between L1 bug risk and L2 bug risk, it’s not clear whether the latter is better!”
It might be a good idea to add a covenant that is simple yet achieves functional escape velocity. — Salvatore Ingala (@salvatoshi) February 21, 2024
The post states, “If L1 consensus fails, there will be a day of chaos for the core developers, but eventually everything will be fine again. L2 bugs can cause people to permanently lose a lot of money.”
If L1 consensus fails, there will be a day of chaos for the core developers, but eventually everything will be fine again. L2 bugs can cause people to permanently lose a lot of money. — Vitalik.eth (@VitalikButerin) February 21, 2024
Over 100 projects have been built on the Ethereum blockchain. The total value locked (TVL) in decentralized finance currently stands at approximately $98.29 billion, data from DefiLlama shows.
Over the past few months, Ethereum has grown significantly amid claims that an Ethereum spot ETF could secure regulatory approval from the U.S. Securities and Exchange Commission (SEC).
Market price updates
Cryptocurrency market capitalization has continued to grow. Limits have jumped more than 10% in the last 30 days. It had previously passed the much-anticipated milestone of $2 trillion, but at the time of writing, its market capitalization has fallen to $1.97 trillion.
Market pioneer Bitcoin has achieved several milestones over the past few weeks. Previously, it was over $45,000. Next, it passed $50,000. It most recently traded above $52,000. Since the beginning of 2024, the cryptocurrency market has experienced many surges, with only significant losses recorded this year as of writing.
The list of intraday gainers is led by SigularityNET (AGIX), which surged more than 30%, Worldcoin (WLD) 28.32%, JasmyCoin (JASMY) 18.59%, render (RNDR) 16.13%, The Graph (GRT) 16.10, and Axelar (AXL). 10.41%.
Arweave (AR) fell over 6% to top the list of 24-hour losers, followed by Stacks (STX) by 4.74%, UNUS SED LEO (LEO) by 4.11%, Kaspa (KAS) by 3.36%, and Sei ( SEI) by 4.74%. 2.55% and DYM 2.23%. Most winners and losers in the market are tokens/coins priced below $20. Some of them are meme coins.
Adarsh Singh Adarsh Singh is a true connoisseur of Defi and blockchain technology, having left his job at a “Big 4” multinational financial company to dedicate himself to cryptocurrency and NFT trading. He has a strong background in finance with an MBA from a prestigious B-school. He delves deep into this innovative field and unravels its complexities. His specialty is finding hidden gems such as coins, tokens, and NFTs. NFTs have sparked a deep interest in him, and his creative analysis of NFTs opens up a compelling story. He is working to make decentralized digital assets accessible to the public.
