Why do layer two architectures fail to solve the core business model problem for blockchains?
Replied byBill Barhydt
Founder & CEO at Abra
Niche: Cryptocurrency
Revenue: Approx. 3 Million USD/month
Location: Mountain View, California, United States
Started: 2014
Layer two technologies are highly interesting technically, but economically they perpetuate the problem. For instance, centralized deployment means networks like Base do not charge significant fees because they do not require distributed incentives to participate, leaving the underlying block space unmonetized.
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