# ETH Is Down Bad, While Layer 2s Are Ripping. Are L2s Parasitic to Ethereum?

Source: https://unchainedcrypto.com/eth-is-down-bad-while-layer-2s-are-ripping-are-l2s-parasitic-to-ethereum
Kiwi News: https://news.kiwistand.com/stories/ETH-Is-Down-Bad-While-Layer-2s-Are-Ripping-Are-L2s-Parasitic-to-Ethereum?index=0x66e29fc2a690d10683145b63a24f61a73e15dcb6609308b1eb935c5cce3627a7cd6f6963
Submitted by misha on 2024-09-12 UTC, 1 upvote, 0 comments

## Summary

Justin Bons and Ryan Berckmans debate whether Ethereum's Layer 2 networks are parasitic to ETH, since rollups collect fees while paying little to the base chain. Bons criticizes L2s for centralizing Ethereum, claims the blockchain trilemma no longer exists, and says Solana has a better roadmap. Berckmans argues that L2s enhance Ethereum's network effects, decentralization and long-term value, and predicts that L2 adoption will surge and drive up L1 fees.

## Article

Ethereum scaled its Layer 2s, but now they are raking in the fees while paying little to the base chain. Are L2s parasitic to ETH, or will things turn around? Justin Bons and Ryan Berckmans debate.

Posted September 10, 2024 at 12:00 pm ET.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Ethereum’s Layer 2 solutions are booming, but are they inadvertently holding back the value of ETH itself?

In this episode, Justin Bons and Ryan Berckmans engage in a heated debate over whether L2s are enhancing Ethereum’s ecosystem or siphoning off its potential. They discuss the impact of L2s on decentralization, network effects, and whether Ethereum L1 can scale on its own or if the base layer and the rollups now have different incentives. Has Ethereum scaled appropriately for future usage, or was scaling via L2s the wrong roadmap for Ethereum?

Show highlights:

How Ethereum’s rollup-centric roadmap consists of a decentralized Layer 1 (L1) for security with Layer 2 (L2) providing more transaction throughput

Why Justin is so critical about how L2s centralize Ethereum

Why, according to Ryan, Layer 2 solutions aren’t parasitic to Ethereum but instead enhance its network effects, decentralization, and long-term value

Why Justin criticizes Ryan’s reliance on “trust me, bro” arguments, questioning the tribalism and authority in claiming the superiority of Ethereum researchers over those from other blockchains

How Justin thinks the Ethereum L1 could scale and what the tradeoffs are

Justin’s argument that Ethereum is stuck in the past and his claim that the blockchain trilemma doesn’t exist anymore

Ryan’s take on Ethereum’s L1 scaling focuses on solving bandwidth limitations and addressing whether L2s are going to fully decentralize

Whether SNARKS is the way that Ethereum scales the L1

Whether L2s will start accepting other tokens to pay for gas

Why Ryan predicts Ethereum’s L2 adoption will surge, driving up L1 fees and boosting Ether’s value as the leading digital money

Whether based rollups are a good solution for Ethereum to scale without losing all the fees

Why L2s would even try to decentralize and why Justin says that Solana has a better roadmap than Ethereum

Concluding thoughts from Ryan and Justin

Thank you to our sponsors!

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EPISODE TRANSCRIPT

Guests:

Justin Bons, Founder & CIO of Cyber Capital

Previous appearances on Unchained:

Is Bitcoin Doomed to Fail? Eric Wall and Justin Bons Face Off

Ryan Berckmans, Ethereum community member and investor

Links

Previous coverage on Unchained of ETH and L2s:

Are L2s ‘Parasitic’? Analysis Shows Ethereum Only Gets a Tiny Percentage of Fees

Are Solana’s ‘Network Extensions’ Just Like Ethereum’s Layer 2s But by a Different Name?

Ethereum Has Had a Banner Year in Most Areas. Except Price.

Should Ethereum Layer 2s Urgently Decentralize Their Sequencers?

Others

Justin’s thread on whether L2s are parasitic

Tweet by Zach Rynes, aka ChainLinkGod

Adam Cochran’s tweet on based rollups

Ethereum Foundation September AMA

Vitalkin on L2s

How do layer 2s really differ from execution sharding?

Layers 2s as cultural extensions of Ethereum