- Binance Research team outlines possible issues on Ethereum due to L2.
- The team expects that as L2 continues to grow, it could pose risks to the network.
- They predict the development of L2 dApps to be a major trend.
Following what it claims was a thorough research of the state of the layer-2 (L2) sector, the Binance Research team has taken to Twitter to detail what might be some problems on the Ethereum network.
The Binance Research team spent some time looking closer into the current L2 space. Here's what we found— Binance Research (@BinanceResearch) October 12, 2022
The team began by stating that, under the assumption that Ethereum will continue its journey toward a settlement layer for security and reliability, they anticipate that L2s will increasingly accumulate revenues away from Ethereum, leading to the possibility of lower staking yields, which could be resulting in new risks.
According to Binance Research, taking into account the many characteristics of Layer 2 scaling solutions — including Side Chains — they think that zkRollups provide the greatest overall solution “in terms of security, performance, usability”, and other significant factors.
The team also considers the creation of zkEVM to be an important achievement. Increasing dApp functionality through zkEVMs and other efforts becomes crucial in light of the expectation that more economic activity will take place on L2s, according to Binance Research.
The majority of Ethereum’s current applications, though, are expected to migrate to L2 in the near future, further highlighting the need for “secure bridges”. As a consequence of this, they anticipate the development of an increased number of bridges between L2s and centralized exchanges, in addition to bridges between the different L2s.
Binance Research wrapped it up by saying that the creation of decentralized applications (dApps) that exist and function natively on L2 platforms is also predicted to be a major trend, however, they are yet to see the trend “play out”.
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