Justin Bons, the founder and chief funding officer of European cryptocurrency fund Cyber Capital, has as soon as once more criticized the operations of Ethereum L2 options. In a current X submit on Saturday, Bons tagged these blockchain platforms designed to enhance the scalability of the Ethereum community as harmful with the capability to cart away customers’ funds unchecked.
Ethereum L2 Centralized Design Poses A Drawback?
Based on Justin Bons, most main Ethereum L2 options are centralized, with single servers usually being liable for operating the platform’s operations. The Cyber Capital CIO states that this design which fits in opposition to the cypherhunk precept of decentralization and safety, might be thought of dangerous to buyers as these chains can collapse at any second as a result of a singular occasion and even be manipulated to steal customers’ funds.
In backing these claims, Bons made reference to Consensys’ zkEVM Roll-up community Linea whose administration on June 2nd, 2024, initiated a pause in block manufacturing as a result of a bug within the platform’s good contract.
The acclaimed crypto researcher additionally highlighted when the Optimism chain underwent a 2-hour downtime on February fifteenth, 2024, as a result of a bug within the community’s centralized sequencer. Along with these examples, Justin Bons’ report additionally included comparable incidents with different Ethereum L2 options corresponding to Starknet, ZkSync, Arbitrum, and Polygon, all of which might be traced to the centralized nature of those initiatives.
The Cyber Capital founder expresses vital opposition to those L2 options, stating they don’t provide the identical stage of safety and stability as the principle Ethereum community. As well as, he states whereas an antagonistic situation corresponding to lack of person funds is but to happen, the truth that such potential exists is very regarding.
Curiously, these statements observe earlier claims by Bons that Ethereum had shaped a parasitic relationship with L2s whereby these platforms now nearly run independently of the principle community, with vital management over liquidity and different components essential to the Ethereum ecosystem.
Ethereum Poised For Additional Worth Decline
In different information, well-liked crypto analyst Ali Martinez has postulated that Ethereum could but keep a downtrend in the intervening time. Notably, the distinguished altcoin produced an underwhelming efficiency in August dropping 22.36% of its worth. Based on the MVRV momentum (180-day), which measures the change of the market worth to realized worth ratio over 180 days, Ethereum nonetheless seems largely overvalued. Due to this fact, its downtrend is probably going removed from a reversal.
On the time of writing, the second largest cryptocurrency alternate palms at $2,500 with a slight lack of 0.99% during the last day. In the meantime, the asset’s each day buying and selling quantity has declined by 55.75% and is valued at $6.85 billion.
Featured picture from Forbes India, chart from Tradingview