This article was first published on æternity blog - Medium
The advantages of having all the options on Layer 1
There’s nothing like being in the middle of a bull-cycle to show which crypto projects can run with the demand of mass adoption and which are scrambling to retroactively create solutions for their short-comings.
Millions of new users are becoming aware of what blockchain technology offers them, thousands of new applications are being created and the traffic on networks reaches billions of transactions. There are no clear winners or losers in the race to bring decentralized finance to the people, however, at the height of the cycle, some major players are starting to show cracks.
Being the trailblazer of smart-contract blockchains, Ethereum is paying the price of being the first. And it’s not just Ethereum, most early blockchains suffer from the same symptoms — lack of scalability, low speed and high transaction cost.
The solution to this problem — Layer 2 applications. And further down the line, possibly even Layer 3. How will it work, what will be the drawbacks, and will these solutions be efficient enough?
Talking to developers about the phenomenon of Layer 2 solutions and their viability, the conclusion I was brought to is that building software is similar to building a house. You need to set the groundwork and design for what it is supposed to be when it’s complete. You shouldn’t build and design at the same time. Imagine starting to build your one-floor house and then, at one point you realise you will need more space, so you decide to add another 2, 3 floors on top and then just do it. Now imagine that entire building collapsing.
When you build software and especially software as sophisticated as blockchain, knowing, planning and designing for the future is the right way. Having a strong architecture that was crafted from the beginning ...
To keep reading, please go to the original article at:
æternity blog - Medium