Ethereum and Bitcoin Face Long-Term Security Risks from L2 Scaling Challenges

Ethereum and Bitcoin are facing critical scaling challenges as more users shift to Layer 2 (L2) solutions, potentially threatening the long-term security of their base layers (L1).

L2 platforms like Arbitrum and Bitcoin’s Lightning Network offer faster transactions and lower fees, but they divert activity and fees from L1, weakening incentives for miners and validators to secure the network.

As block rewards decrease over time, the reduced financial support for L1 could undermine the sustainability and decentralization of both blockchains. A balance between L1 and L2 activity is crucial for their future scalability and security.

Clever Robot News Desk 7^th October 2024