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--- Reflections on Layer 2 scaling 4 months after releasing @deversifi with @StarkWareLtd on main-net Ethereum ---
1. If someone is telling you that & #39;their& #39; scaling solution is superior in every way, they are likely either pumping their bags or wilfully ignorant.
1. If someone is telling you that & #39;their& #39; scaling solution is superior in every way, they are likely either pumping their bags or wilfully ignorant.
2. Every blockchain scaling solution has a different set of trade-offs, and as a result has certain advantages AND disadvantages.
For example you could optimise for speed ( @solana), flexibility and developer tooling (like @optimismPBC with OVM), or privacy ( @aztecnetwork ).
For example you could optimise for speed ( @solana), flexibility and developer tooling (like @optimismPBC with OVM), or privacy ( @aztecnetwork ).
3/ However you can& #39;t optimise for EVERY desirable parameter without giving up something else. Most often its at the expense of finality or security.
Some trade-offs can make sense for one application, like an exchange, but won& #39;t make sense for others, like minting NFTs!
Some trade-offs can make sense for one application, like an exchange, but won& #39;t make sense for others, like minting NFTs!
4/ @deversifi chose @StarkWareLtd& #39;s Validium because we thought it had an optimal set of trade-offs for an exchange.
Validity / ZK proofs mean that there is no complex game theory or dispute periods, and once a proof is verified trades cannot be rolled back.
Validity / ZK proofs mean that there is no complex game theory or dispute periods, and once a proof is verified trades cannot be rolled back.
5/ Layer 2 scaling is still entirely in its infancy. The first challenge for DeversiFi was to make the technical jump to use a scaling layer. For many apps this is still the challenge ahead of them.
But after that there is a whole new world of challenges waiting - Surprise!
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But after that there is a whole new world of challenges waiting - Surprise!
6/ The next set of challenges, which @deversifi is now tackling are equally complicated but don& #39;t become obvious until you& #39;re actually facing them.
For example dealing with reduced capital efficiency and opportunity cost: https://twitter.com/StarkWareLtd/status/1314124571877015552">https://twitter.com/StarkWare...
For example dealing with reduced capital efficiency and opportunity cost: https://twitter.com/StarkWareLtd/status/1314124571877015552">https://twitter.com/StarkWare...
7/ TLDR; Scaling blockchains is hard, and if you are a builder on Ethereum don& #39;t hope that moving to Layer 2 is instantly going to solve your problems.
When evaluating L2 think about:
- Capital efficiency
- Interoperability between L1 and L2
- Interoperability with other L2s
When evaluating L2 think about:
- Capital efficiency
- Interoperability between L1 and L2
- Interoperability with other L2s