Kenny Li predicts only a handful of Ethereum L2-Altcoins to endure the next five years.
The future of Ethereum layer 2 blockchains is currently a topic of debate, with a particular focus on the concept of modularity. Modularity is seen as crucial as it allows for easier integration of new features and updates. However, whether modularity will become the dominant approach remains uncertain.
Kenny Li, co-founder of Manta Pacific, is championing the adoption of a “modular” approach for long-term success in the ever-evolving blockchain world. Li argues that many existing layer 2 networks may not withstand the test of time and emphasizes the need for adaptability and flexibility in blockchain development.
Li’s insights have sparked discussions about the future direction of Ethereum layer 2 solutions. It is important to form your own opinions by diving into the concept of modularity.
Modularity involves breaking down blockchain tasks into separate components for easy integration and evolution. Li highlights that there are currently only 44 active Ethereum layer 2 networks with a total value locked (TVL) of $36.92 billion. Among them, Arbitrum leads with $14.5 billion. This showcases a select few, including Manta, Celestia, and Cosmos, who follow the modular approach. Li compares these networks to “modular” blockchains, emphasizing their flexibility and their attempt to create improved versions of Bitcoin and Ethereum.
Li emphasizes the importance of adaptability and likens building blockchains to playing with LEGO blocks, allowing for easy changes. However, some critics argue that the debate over how blockchains are built is trivial.
The modular vs. monolithic debate has its critics, who view it as a mere “marketing stunt.” Austin Federa, spokesperson for the Solana Foundation, cautions against oversimplifying blockchain design, stating that these classifications may overlook fundamental issues. He suggests adopting a more nuanced perspective that acknowledges the complex trade-offs in blockchain development.
Li’s stance aligns with past efforts to enhance Bitcoin and Ethereum, highlighting the inadequacy of one-size-fits-all solutions. He attributes Ethereum’s success to its modular design, which enables swift adaptation to changing user needs. Federa, on the other hand, urges a balanced view, noting that while modular designs offer flexibility, monolithic structures may excel in simplicity and efficiency for specific use cases.
This ongoing discussion highlights the continuous evolution of blockchain development, as developers strive to find the delicate balance between innovation and reliability. The question remains: will modularity emerge as the preferred approach for blockchain construction?