PART 2

Looking Ahead: Promising Trends

L2 is working! In fact, even fast networks like Solana are developing their own L2 solutions (e.g., Sonic, Bullet). 😲Solutions to L2 fragmentation are already in progress and will gradually roll out within Ethereum’s ecosystem, starting with the Pectra update in April 2025 (introducing concepts like intents and account abstraction). 👍

Key Takeaways:

There’s no scalable path forward without L2.Ethereum recognized this early and already has hundreds of independent L2 solutions in its ecosystem. The next bottleneck—fragmentation—is already being addressed and will see partial resolution by April 2025.Ethereum leads technologically, while other networks are playing catch-up. Nothing new there! 😂

The Big Picture: Why Security Trumps Fees

The inevitable L2 scaling model leads to a clear division of responsibilities:

L2: Execution—speed, low cost, and seamless integration.L1: Settlement—validation and reconciliation, akin to "interbank transactions."

And what’s the most critical requirement for settlement? Security. 🔰

As the industry moves toward appchains and specialized L2 networks tailored for diverse business models, the demand for secure Layer 1s increases exponentially.

At this point, the volume of transaction fees collected by L1 becomes less relevant. Why? Because a single failure or downtime on L1 could cost the entire ecosystem of dependent L2s tens or even hundreds of billions of dollars during the outage. 🥶

Once you understand that long-term value is driven by demand for security, not transaction fees, Ethereum’s position makes much more sense. 🤔

Makes sense, doesn’t it?