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XRP Co-Creator Responds to Justin Bons’ Controversial Blockchain Initiative — TradingView News
Justin Bons has stirred controversy by claiming that layer 2 solutions do not effectively scale blockchains and merely divert traffic from the main chain to compete for fees. Bons argues that limiting Tier 1 capacity in favor of Tier 2 is a misguided approach born of corruption.
Layer 1 blockchains, like Ethereum, process transactions directly on the main chain, while layer 2 solutions, like Arbitrum, aim to increase transaction speed and reduce costs.
It is not possible to scale a blockchain via L2
Since it routes traffic away from the chain instead of actually scaling it
In reality, L2s are parasitically competing with L1s on commissions!
This is why limiting the capacity of L1 in favor of L2 is a perversion; born of corruption! — Justin Bons (@Justin_Bons) June 18, 2024
Furthermore, Bons criticized the Ethereum ecosystem for being stuck at around one million transactions per day for the past four years. He pointed out that other blockchains, such as Solana SOLUSD, have achieved higher transactions per second than Ethereum and all of its L2s combined. According to Bons, Ethereum has reached a dead end in terms of scalability.
Schwartz intervenes
In response to Bons’ comments, Ripple CTO David Schwartz, one of the original architects of XRP Ledger, offered a different perspective. Schwartz argued that fee competition is beneficial to users and only harmful to those seeking to overtax transactions.
He pointed out that this fee competition is consistent with the ethos of decentralization and self-sovereignty espoused by blockchain technology, and contrasted it with the idea that intermediaries profit excessively from transaction fees.
Schwartz’s comments suggest that while Bons considers L2 solutions insufficient for true scalability, the competition they bring could drive innovation and reduce costs for end users. This debate highlights the ongoing tension in the blockchain community over the best path forward for scalability and user-centric pricing structures.