Solana Co-Founder Challenges Layer 2s—Are They Even Needed?

Source Bitcoinist

The co-founder of a popular cryptocurrency took a swipe at Layer-2 cryptos, claiming that these rollups are only redundant and make blockchain scaling more complicated.

Anatoly Yakovenko, co-founder of the Solana network, argued that Layer-1 solutions are sufficient without Layer-2 tokens which do not offer genuine, long-term benefits.

Layer-2 Not Needed?

Yakovenko said in an X post that Layer-2 cryptocurrencies are unnecessary and only add unnecessary complexity to blockchain scaling.

“There is no reason to build an L2,” Yakovenko said in a post, which is the Solana co-founder’s response to @ripdoteth, who claimed that there is no reason to build a Layer-1.

The crypto co-founder argued that Layer-1 solutions, like the Solana network, can already offer efficient, cheap, and secure scaling solutions. Hence, he said that Layer-2 tokens are only providing redundancy.

“They aren’t slowed down by a glacially moving L1 data availability stack, or have to compromise security with complex fraud proofs and upgrade multisigs,” he explained.

He added that Solana does not encounter these kinds of problems since it has separate execution and data layers on an efficient base layer.

Storage Issues

Yakovenko described Solana’s data generation as tiny at 80 terabytes annually, saying that Layer-1 cannot scale because they are hindered by storage.

“Solana generates a measly amount of data. Like 80TB per year so far. It’s just not enough data to build a business around, but too much for any individual to easily store,” Yakovenko said.

The crypto co-founder told users not to create baseless Layer-2 cryptocurrencies, saying early this month, “You can skip creating a valueless L2 and just launch a token.”

When asked about Solana’s plan on offloading unused storage, he responded that the ledger is going on “filecoin or whatever decentralized storage provider wants it.”

Some Do Not Agree

Several crypto investors disagree with Yakovenko, arguing that Layer-2 solutions are necessary.

“L1s can’t scale to accommodate 8 billion global users. L2s are needed no matter which chain you see leading the way. And they can be faster, cheaper, more secure, interoperable, specialized to use case, localized or decentralized, evolve fast or ossify,” @RuzhyoX commented on Yakovenko’s post.

The Solana co-founder replied that Layer-1 can accommodate 8 billion users, saying, “8 billion * 3 txs per day is sub 300k tps. That fits in under 1gbps of block throughput for 400 byte txs.”

He argued that Solana’s design allows it to compete with every Ethereum Layer-2 solution directly, which is not the case with Ethereum itself. “There is no point to multiple L2s … if a single L2 can handle parallel execution, then it can use up all the blobspace and run every use case.”

Featured image from Gemini Imagen, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US Dollar Index (DXY) advances to two-week high near 99.75; not out of the woods yetThe US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts some buyers for the third straight day and climbs to a two-week high, around the 99.70-99.75 region during the Asian session on Thursday.
Author  FXStreet
10 hours ago
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts some buyers for the third straight day and climbs to a two-week high, around the 99.70-99.75 region during the Asian session on Thursday.
placeholder
EUR/USD Price Forecast: Bullish outlook remains in play near 1.1300The EUR/USD pair weakens to around 1.1295 during the early European session on Thursday, pressured by the renewed US Dollar (USD) demand. The optimism over the potential de-escalation of the US-China trade war provides some support to the Greenback and creates a headwind for the major pair.
Author  FXStreet
10 hours ago
The EUR/USD pair weakens to around 1.1295 during the early European session on Thursday, pressured by the renewed US Dollar (USD) demand. The optimism over the potential de-escalation of the US-China trade war provides some support to the Greenback and creates a headwind for the major pair.
placeholder
Ripple Price Forecast: XRP builds bullish momentum as Ripple eyes Circle with $5B acquisition bidRipple’s (XRP) price is consolidating at $2.21 at the time of writing on Thursday, reflecting sideways trading in the wider cryptocurrency market. There is a growing need for XRP to hold above the immediate $2.20 confluence support to validate the potential breakout targeting $3.00.
Author  FXStreet
10 hours ago
Ripple’s (XRP) price is consolidating at $2.21 at the time of writing on Thursday, reflecting sideways trading in the wider cryptocurrency market. There is a growing need for XRP to hold above the immediate $2.20 confluence support to validate the potential breakout targeting $3.00.
placeholder
GBP/JPY rises to near 192.00 after BoJ’s Ueda speechThe GBP/JPY cross gains ground to near 191.95 during the early European session on Thursday. The Japanese Yen (JPY) softens against the Pound Sterling (GBP) after the Bank of Japan (BoJ) kept interest rates steady and slashed its growth forecasts on Thursday. 
Author  FXStreet
10 hours ago
The GBP/JPY cross gains ground to near 191.95 during the early European session on Thursday. The Japanese Yen (JPY) softens against the Pound Sterling (GBP) after the Bank of Japan (BoJ) kept interest rates steady and slashed its growth forecasts on Thursday. 
placeholder
NZD/USD edges lower to near 0.5900 as US Dollar appreciates ahead of ISM Manufacturing PMIThe NZD/USD pair has trimmed its daily gains and is depreciating, trading near 0.5920 during the early European session on Thursday. The New Zealand Dollar (NZD) faces pressure as expectations mount for further monetary easing by the Reserve Bank of New Zealand (RBNZ).
Author  FXStreet
10 hours ago
The NZD/USD pair has trimmed its daily gains and is depreciating, trading near 0.5920 during the early European session on Thursday. The New Zealand Dollar (NZD) faces pressure as expectations mount for further monetary easing by the Reserve Bank of New Zealand (RBNZ).
goTop
quote