Why Do We Have So Many Layer 2s On Ethereum?

My Ethereum knowledge was initially 5 years ago but it was only on the asset price value aspect. I fully understood the utility value of Ethereum 2 years ago and that broaden my horizon on Ethereum and crypto generally. Ethereum is a blockchain technology that aside Bitcoin is the most important blockchain in the crypto space. When Vitalik Buterin was building the Ethereum blockchain, he studied bitcoin and basically built Bitcoin but better, more secured and more enhancement. After building it, the blockchain gets developed every time non stop. Most projects want to build on the EVM technology as layer 2. I have lost count of how many layer 2s are out there, but it’s an interesting question to ask right?

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It takes a lot to consider building a crypto project in a competitive crypto space we are in. The crypto space is quite new but highly competitive as a lot of people are coming into the space and a lot of people are also exiting the space. Lots of crypto projects have launched and failed and lots of them have succeeded. So most times most crypto projects consider launching on more secured chain like the Ethereum chain. I remember investing on a project that switched launch chain, switched from polygon to Ethereum. Cost us some gas fees but I hope it was worth with it.

From the image above, it shows that a crypto project called canto decided to switch from its chain to the Ethereum chain. Canto was a new chain that launched late last year or earlier this year, it pumped for some days and trended but for a while it’s been silent until it announced its migration to the Ethereum chain. It will be partnering with polygon to help its migration. One of the reasons is for liquidity to flow into the project and let’s not forget that DeFi is kind of Ethereum.

Lots of DeFi projects are on the Ethereum chain and most of them chose the chain because of security, so if you are thinking and asking why lots of layer 2s are on the Ethereum chain, I think it’s because of the security. Which is something Ethereum has been focused on for years.

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Yeah, everybody knows Ethereum. Lots of stores, dapps, metaverse platforms and wallets. I use Polygon all the time.

Best one in my view. Polygon L2.

i use polygon too