- Cz says L2 could be a extra sensible selection if the primary focus is to make use of the blockchain for the AI economic system
- AI tasks don’t essentially want full l1 sovereignty
- L1 supplies full management and possession however is dear and time consuming
ChangPeng Zhao (CZ), former CEO and co-founder of Binance, shared his ideas of debate on this planet of blockchain-would have new AI tasks to construct his personal layer 1 (L1) or use the prevailing layer 2 (L2) options (L2)?
It notes that if the primary focus of the AI challenge is to make use of blockchain for the AI economic system reasonably than innovate on the Blockchain protocol itself, then constructing on L2 could be a extra sensible selection.
CZ: Layer 2S gives practicality for AI Crypto
Because of this they’ll profit from the reliability and security of the established L1 with out having to take care of it. Through the use of what already exists, these tasks can get their options quicker and join with an energetic ecosystem on platforms equivalent to Ethereum.
Though the talk shouldn’t be new, it’s nonetheless fascinating to listen to the concepts of one of the vital influential folks within the crypt of the world. It appears that evidently current market traits have emphasised a shift that might present different data.
For instance, many new tasks, particularly in industries equivalent to AI, discover that they don’t want full Sovereignty L1. As a substitute, using L2 can present the required scalability and security with considerably decrease prices.
Layer 1 vs. Layer 2: defined key variations
L1 is a fundamental blockchain equivalent to Bitcoin, Ethereum and Solan. IT constructing supplies a challenge full management over its protocol, consensual mechanism and community settings. This can be enticing as a result of it represents the actual decentralization and full possession of the blockchain design.
Alternatively, options L2 (equivalent to equal or facet) on the prime of the established L1. They supply extra scalability and performance and on the identical time relying on the safety and ecosystem of the L1 on which they’re constructed.
One of many important variations is that creating and sustaining L1 is an enormous enterprise – one which requires the settings and securing of the community of nodes and validators. Alternatively, use L2 implies that the challenge can skip a considerable amount of work to construct a brand new blockchain. Because of this, L2 tasks can hook up with present decentralized inventory exchanges, everlasting market markets (Perps), developer instruments and a wider neighborhood that’s already energetic for L1.
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