Ethereum's 'parasitic' relationship with L2s: Knowledgeable's Take

• Justin Bons warns that second-layer options are forward of Ethereum.
• Bons criticizes Ethereum's governance and cites issues with centralization.
• It means that L2's dominance might sign Ethereum's decline.

Cyber ​​Capital founder Justin Bons has shared a essential view of Ethereum's future, claiming that the platform is “dying” whereas Layer 2 (L2) options acquire traction. Bons argues that Ethereum's incapability to deal with excessive transaction volumes and costs has pushed customers to L2, creating what he calls a “parasitic relationship” the place L2 thrives at Ethereum's expense.

Bons claims that Ethereum's charge revenue has plummeted because the implementation of EIP-4844, as L2s started to seize many of the charges. This modification resulted in elevated inflation inside the Ethereum community, making it much more susceptible.

As well as, Bons factors out that the rise of L2 has fragmented the Ethereum ecosystem, dividing liquidity and complexity, and hindering the seamless interplay of DeFi purposes.

Centralization is one other main problem with Bons. He observes that many high-end L2s have the potential to censor transactions or seize person funds, contradicting Ethereum's authentic decentralized imaginative and prescient. He attributes this centralization to Ethereum's governance mannequin, which lacks on-chain voting and permits for centralized management over community improvement.

The founding father of Europe's oldest cryptocurrency fund additionally warns {that a} return to Layer 1 (L1) scaling for Ethereum is not doable with out L2 devaluation. He means that if Ethereum had been to make a serious enchancment in L1 scaling, it will render L2 pointless, inflicting their token costs to plummet and resulting in vital monetary losses for traders. Bons says this may go towards Ethereum's management, which he accuses of prioritizing L2 over the long-term well being of the community.

Bons's critique doesn’t paint L2 as an extension of Ethereum, however as rivals or “vampires” which are draining Ethereum of life. He’s optimistic about the way forward for sure L2s, however stays uncertain about Ethereum's prospects. He believes that Ethereum's management has “offered out” to enterprise capitalists who revenue from L2, turning the platform right into a rent-seeking automobile as a substitute of a public good.