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Layer 2s: Betamax vs VHS?

Nov 30, 2020 · 6 min read

By Luke Saunders

In my last daily I posed some questions I wanted to have answered regarding any potential shift to Ethereum layer 2 in preparation for our upcoming layer 2 report. In the weeks since we’ve talked to most of the leading layer 2 teams and DeFi projects such as ZkSync, Starkware, Fuel, Loopring, Aave, Synthetix, 1inch, Balancer, Uniswap and more to understand how they see the tradeoffs of the different layer 2 solutions and their plans to migrate to them if any.

Views were polarized: some viewing zero knowledge proofs as the superior solution with optimistic rollups having critical flaws, while others were of the opinion that the recursive zero knowledge proof technology required for generalised smart contract support was very difficult and even if achieved the proof sizes would be too big and costly, so therefore optimistic rollups should be the winning layer 2 solution.

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