Justin Bons, founder and chief funding officer of European cryptocurrency fund Cyber Capital, has as soon as once more criticized the operation of Ethereum’s L2 resolution. exist Recent X posts On Saturday, Bangs labeled these blockchain platforms aimed toward bettering the scalability of the Ethereum community as harmful due to their capability to maneuver customers’ funds with out management.
Is there an issue with Ethereum’s L2 centralized design?
Justin Bons mentioned that the majority main Ethereum L2 options are centralized, and a single server is normally accountable for operating the platform’s operations. Cyber Capital CIO said that this design violates the cypherhunk rules of decentralization and safety and could also be thought-about dangerous to buyers, as these chains can collapse at any time as a result of a single occasion, and even be manipulated to steal consumer funds.
In assist of those claims, Bons pointed to Consensys’ zkEVM roll-up community Linea, whose administration suspended block manufacturing on June 2, 2024 as a result of a bug within the platform’s sensible contracts.
The acclaimed cryptocurrency researcher additionally highlighted that the Optimism chain skilled a 2-hour outage on February 15, 2024 as a result of an error within the community’s centralized orderer. Along with these examples, Justin Bons’ report consists of related incidents with different Ethereum L2 options reminiscent of Starknet, ZkSync, Arbitrum, and Polygon, all of which could be traced to the centralized nature of those tasks.
The founding father of Cyber Capital expressed robust opposition to those L2 options, saying that they don’t present the identical diploma of safety and stability as the primary Ethereum community. As well as, he mentioned that though adversarial conditions reminiscent of lack of consumer funds haven’t but occurred, the truth that this risk exists is extremely worrying.
Curiously, these statements are as follows Previous claims Bons mentioned that Ethereum has developed a parasitic relationship with L2, and these platforms now function nearly independently of the primary community and have vital management over liquidity and different components vital to the Ethereum ecosystem.
Ethereum Value Will Fall Additional
In different information, well-liked cryptocurrency analyst Ali Martinez There are assumptionsd believes that Ethereum should still keep a downward development in the intervening time. Notably, this well-known altcoin had a mediocre efficiency in August, shedding 22.36% in worth. Ethereum nonetheless seems to be considerably overvalued based mostly on MVRV Momentum (180 Days), which measures the change in market worth to realized worth ratio over 180 days. Subsequently, its downward development is probably going removed from reversing.
On the time of writing, the second-largest cryptocurrency alternate is buying and selling at $2,500, down barely by 0.99% from yesterday. In the meantime, the asset’s day by day buying and selling quantity fell by 55.75%, valuing it at $6.85 billion.
Featured photos are from Forbes India and charts are from Tradingview
