Ethereum Ought to Return to Layer 1 Scaling through Rollup or Sharding, Says Cyber Capital Founder

Cyber Capital founder Justin Bons lately expressed concern about ethereum’s present woes, attributing entrenched corruption to a significant misalignment of its incentives.

Bons asserted on social media that cash flowing into the ecosystem by way of layer 2 options outstripped funding in layer 1. The hole between thousands and thousands and billions has been the principle cause for Ethereum’s departure from Layer 1 scaling, a growth that’s naturally to be anticipated in any system scaling.

The core downside is that Ethereum has gone astray, leading to an uncommon incentive construction. Builders, influencers, and leaders are compelled to make greater earnings within the quick time period by adhering to the Layer 2 narrative whereas supporting the Layer 1 capacity-limiting narrative.

This battle of curiosity creates a transparent battle between the long-term success of the Ethereum community and the speedy advantages of Layer 2.

Bons urged that Ethereum ought to think about returning to Layer 1 scaling by adopting roll-ups or shard chains. Moreover, he highlighted the continued curiosity amongst Ethereum builders within the ZK EVM (Zero-Data Ethereum Digital Machine), which has the potential to scale to Layer 1. Nevertheless, its growth continues to be in its infancy and isn’t but thought of viable.

What is required is on-chain governance that directs funds from block rewards to a decentralized treasury. This strategy, which might set up a Layer 1-centric supply of funding able to competing with opposing pursuits, has been validated by established public blockchains equivalent to XTZ, DASH, and DCR.

The challenges dealing with Ethereum spotlight the necessity for a strategic alignment of incentives that prioritizes Layer 1 scaling. Because the ecosystem continues to develop, a steadiness should be struck between short-term positive aspects and long-term sustainability.

Bons’ suggestions make clear potential options, emphasizing the significance of addressing these points in a well timed method.