Only a handful of L2-Altcoins on Ethereum L2 Networks expected to endure over the next 5 years

Kenny Li, co-founder of Manta Pacific, has ignited a debate about the future of Ethereum layer 2 blockchains. He argues that for long-term viability in the evolving blockchain landscape, these networks must adopt a “modular” approach. Li believes that many existing layer 2 networks may not survive the next five years, emphasizing the importance of adaptability and flexibility in blockchain development.

Li’s concept of modularity involves breaking down blockchain tasks into separate components for easy integration and evolution. He points out that only a few networks, such as Manta, Celestia, and Cosmos, currently follow this approach. Li compares these new blockchains to failed attempts at creating “better” versions of Bitcoin and Ethereum, suggesting that their modularity enables flexibility and easy adaptation.

However, some critics dismiss the modular vs. monolithic debate as a mere “marketing stunt.” According to Austin Federa, spokesperson for the Solana Foundation, this classification oversimplifies blockchain design and may overlook fundamental issues. Federa argues that black-and-white thinking fails to consider the complex trade-offs involved in blockchain development.

Li’s case echoes past attempts to split Bitcoin and Ethereum, highlighting the shortcomings of one-size-fits-all solutions in fostering innovation and growth. He credits Ethereum’s strength and dominance to its modular design, which allows for quick changes to meet evolving user needs.

Federa cautions against viewing modular and monolithic methods as entirely distinct approaches. Instead, he advocates for a more nuanced perspective that considers the various architectural options available to blockchain developers. While modular designs offer flexibility, monolithic designs may be simpler and more efficient for certain use cases.

Overall, the ongoing discussion underscores the continuous evolution of blockchain development as it strives to strike a balance between new ideas and reliability. Whether modularity becomes the prevailing approach to building blockchains remains uncertain. Nevertheless, exploring these ideas deepens our understanding of how blockchains function and what they may look like in the future.