In recent discussions about the future of Ethereum‘s Layer 2 (L2) networks, Kenny Li, Manta Pacific’s co-founder and managing director, claims the majority of the 44 active L2 projects will not withstand the test of time, with only a few expected to prevail in the next five years. He advocates for “modular” blockchain networks such as Manta, Celestia, and Cosmos, challenging the more traditional “monolithic” models.
Dim Prospects for Many Ethereum L2 Networks
Despite the large number of Ethereum L2 networks and their collective locked value of $36.92 billion, Li draws parallels between them and previous unsuccessful forks of Bitcoin and Ethereum. He suggests that the current crop of Ethereum L2s may suffer a similar fate as those once hailed as Bitcoin or Ethereum killers, which failed to maintain a competitive edge.
The primary flaw in these previous iterations, according to Li, was their monolithic structure, which did not lend itself to rapid incorporation of new technologies. He touts the design flexibility and adaptability of modular blockchains, forecasting a grim future for many L2 projects amidst the changing landscape.
Modular Versus Monolithic: More Than a Marketing Gimmick?
The contention between modular and monolithic constructs has ignited debates within the crypto community. Austin Federa of the Solana Foundation dismisses the dichotomy as mostly a marketing ploy rather than an essential architectural divergence.
Federa acknowledges that both models have their benefits, asserting that the narratives built around them are primarily driven by marketing strategies. Despite the controversy, Li stands by modular networks like Manta for their adaptability and technological integration capabilities, while Federa holds that the distinction is a simplification that does not accurately capture the nuances of blockchain architecture.