Ethereum’s L1 And L2 Success: Bitcoin And Solana Race To Catch Up
- Bitcoin and Solana are now emulating Ethereum’s L1 and L2 model for improved scalability and decentralization.
- To address its security budget crisis, Bitcoin is pushing for L2 solutions, following Ethereum’s successful path.
- Solana rolls out its first L2 but struggles with decentralization, trailing Ethereum in building efficient solutions.
Ryan Berckmans highlighted a crucial trend in the blockchain world. Bitcoin and Solana now try to imitate Ethereum’s model for scalability and decentralisation. As Berckmans noted, the transition is taking place as Bitcoin and Solana try to position themselves as more like Ethereum. This pioneering blockchain project has also adopted the Layer 2 (L2) solutions within the Layer 1 (L1).
Bitcoin, in specific, has major issues with regard to funding the cost of its security. To this end, some Bitcoin advocates have called for a hard fork to enable real L2 solutions and a more efficient application layer, something Ethereum has done well to adopt. Such changes help maintain competitiveness of the first cryptocurrency in the constantly developing sphere of blockchain solutions.
Ethereum-Inspired L2 Adoption
On the other hand, Solana has also been making efforts to make itself look more like ETH. In the past month, the blockchain platform introduced its first general-purpose L2, a major step towards improving the platform’s throughput and lowering fees.
However, Solana has still some issues with decentralization which is a big concern, Edward Snowden also mentioned that Solana’s network is too centralized. ETH, on the other hand, has a more established model of developing L2 solutions, and experts claim that Solana has been late with its attempts to diversify clients and build more efficient L2 solutions for years.
Growing Impact of Ethereum’s Model
In the view of Berckmans, this increasing trend toward Ethereum’s approach is success. Through having a highly decentralized L1 and a range of L2 solutions, ETH has emerged as the leading player in the world of blockchains and cryptocurrencies. According to Berckmans, “L1+L2s are eating the economic world,” meaning that this model is now the most important for the further development and popularization in the blockchain field.
Bitcoin and Solana’s efforts to mimic Ethereum’s strategy may not be soon. However, the big question is how long before the market realizes that while both emulate ETH, they are a long way from emulating the success that ETH has achieved. The war to decentralize and scale through L1+L2 solutions in the blockchain space may well determine the future of these leading platforms.
