Only Few Ethereum L2-Altcoins Will Survive the Next 5 Years: Kenny Li

In the ongoing Ethereum layer 2 debate, Kenny Li, co-founder of Manta Pacific, is championing a game-changing idea – the adoption of a “modular” approach for long-term success in the ever-evolving blockchain world. Li argues that many existing layer 2 networks might not stand the test of time, emphasizing the crucial need for adaptability and flexibility in blockchain development. 

His insights are sparking conversations about the future path of Ethereum layer 2 solutions. Read on to form your own opinions!

Decoding Modularity: A Breakdown

In a recent interview, Li dove into his concept of modularity, breaking down blockchain tasks into separate components for easy integration and evolution.

Starting with L2Beat reports, Li pointed out that only 44 active Ethereum L2 networks exist, with a total value locked (TVL) of $36.92 billion. Notably, Arbitrum leads the pack with $14.5 billion. This highlights a select few, including Manta, Celestia, and Cosmos, who follow the modular approach. Li likens them to “modular” blockchains, emphasizing their flexibility – a trait akin to attempting to create “better” versions of Bitcoin and Ethereum.

Li stresses the importance of adaptability, drawing a comparison to building with LEGO blocks – allowing changes easily. However, some argue that debating how blockchains are built is a trivial matter.

Also Read: Vitalik Buterin Interestingly Sheds Light on Ethereum Layer 2

Key Debate: Modular vs. Monolithic

Despite Li’s fervor, critics dismiss the modular vs. monolithic debate as a mere “marketing stunt.” Austin Federa, spokesperson for the Solana Foundation, warns against oversimplifying blockchain design, noting that these classifications may hide basic issues. He suggests a more nuanced perspective, acknowledging the intricate trade-offs in blockchain development.

Li’s stance aligns with past attempts to enhance Bitcoin and Ethereum, stressing the inadequacy of one-size-fits-all solutions. He credits Ethereum’s dominance to its modular design, allowing swift adaptation to changing user needs.

Federa urges a balanced view, noting that while modular designs offer flexibility, monolithic structures may excel in simplicity and efficiency for certain uses.

Read More: Will Ethereum (ETH) Price Hit ATH in March?

A Peek Into the Future

This discussion underscores the continuous evolution of blockchain development, grappling with the delicate balance between innovation and reliability. The question remains – will modularity emerge as the go-to approach for blockchain construction?