Ethereum co-founder Joe Lubo discussed the future of the Smart Contract Network at the Digital Asset Summit and said the Layer-2 scaling networks (L2) would continue to be the center of the Ethereum ecosystem.
In an exclusive interview with Cointelegraph’s Turner Wright, Lubin said applications will require next-generation databases enabled by high-throughput blockchain technology. Ethereum co-founder added:
“The Ethereum ecosystem is so big and old -fashioned that it is best for new types of databases – new types of layer 2 networks – to set up a shop, as Ethereum’s 2s 2s. We have our own with some good qualities called Linea.”
“Another great application, or good layer 2, which is emerging soon is called megaeth,” Lubin continued.
The Ethereum co-founder eventually concludes that the newer layer-1 chains will have a tough time competing with the Ethereum network, which features stable architecture and security guarantees.
Joe Lubin speaks at the Digital Asset Summit. Source: Digital Asset Summit
Related: Ethereum pushed Pectra upgrading to conduct a third testnet ‘hoodi’
Investors have doubts about Layer-2-2 approach
According to L2BeatCurrently there are more than 140 unique scaling solutions for Ethereum, including 60 rollup networks.
Investors criticized Ethereum’s layer-2 networks as parasitic elements that flow into the layer-1 network of revenues while contributing only a small amount of economic amount to the base layer.
Ethereum’s average gas fee dropped by 95% Following the Dencun upgrade in March 2024, the transaction fees for the Layer-2 networks dramatically lowered.
The reduction in transaction fees has caused a 99% collapse in income on the Ethereum base layer in September 2024.
Network fees in the Ethereum Layer-1 flatline following the Dencun upgrade. Source: The terminal of the tie
Since at that time, the price of ether (Eth) generally decreases, falls into a recent -only low to approximately $ 1,759 on March 11 and leads many analysts to predict A further decline in price in 2025.
Data from Farside investors shows Outflows From funds exchanged by the Ether Exchange (ETF) continued 11 consecutive days in the midst of a broader collapse in crypto markets.
The most significant day of the flows occurred on March 13, when investors pulled a collective $ 73.6 million from the ETFs as they discarded assets at risk for less volatile alternatives such as cash, security security and dollar-pegged stablecoins.
Magazine: Launching Megaeth can save Ethereum … But at what cost?
