3 main challenges in L2s ecosystem: from Altan Tutor, co-founder & CEO @ Nuffle Labs, developing NEAR DA & The Nuffle Fast Finality Layer!
💔 Liquidity fragmentation: As more Layer 2 solutions and rollups are launched, liquidity becomes fragmented across different L2s and Layer 1 blockchains.
This makes it harder for users and developers to efficiently manage assets across multiple layers, leading to inefficiencies in DeFi operations.
🌉 Complexity of cross-layer interaction: Each Layer 2 operates independently, making it difficult to unify data and state across blockchains.
Users often need to move assets between different L2s, which is costly and time-consuming, complicating the overall user experience.
👮 Varying security models: Different Layer 2 solutions employ varying security models, such as multisig)validation, which may be less secure than the decentralized validation models used by Layer 1 chains.
This variation creates security trade-offs that users need to be aware of, adding another layer of complexity to the L2 ecosystem.
💔 Liquidity fragmentation: As more Layer 2 solutions and rollups are launched, liquidity becomes fragmented across different L2s and Layer 1 blockchains.
This makes it harder for users and developers to efficiently manage assets across multiple layers, leading to inefficiencies in DeFi operations.
🌉 Complexity of cross-layer interaction: Each Layer 2 operates independently, making it difficult to unify data and state across blockchains.
Users often need to move assets between different L2s, which is costly and time-consuming, complicating the overall user experience.
👮 Varying security models: Different Layer 2 solutions employ varying security models, such as multisig)validation, which may be less secure than the decentralized validation models used by Layer 1 chains.
This variation creates security trade-offs that users need to be aware of, adding another layer of complexity to the L2 ecosystem.