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The fallacy of scalability — why layer 2s won’t save crypto

Coin Telegraph LogoCoin Telegraph21h ago

The fallacy of scalability — why layer 2s won’t save crypto - Coin Telegraph

Quick Summary:

While bridge-related hacks have become much less common in the last two years, hackers will always find new ways to balance the books — exploiting rollups, channels and sidechains. Many L2s’ reliance on sequencers or trusted validators creates additional cracks in the armor, single points of failure, while siloed liquidity reduces validator availability for smaller L2s, threatening network resilience.

L2 proponents argue that these trade-offs are necessary and easily overcome, but there are even more fundamental issues here than sacrificing security, scalability or liquidity. Recent: AI has had its Cambrian moment — Blockchain’s is yet to comeCrypto’s endgame is a universal network where any asset or decentralized application can instantly interact with any other in a trustless, secure way.

This allows transactions to be processed in parallel across multiple shards and even within shards themselves, leaving a shard’s only concern that the transactions modifying the state for which they are responsible do not have intersecting dependencies, significantly increasing throughput without compromising decentralization or accessibility. When these shards are integrated with atomic commitment, if any part of the transaction fails, everything aborts cleanly, and there’s no work needed to untangle hanging state changes.

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Article Details

Author / Journalist: Cointelegraph by Dan Hughes

Category: Crypto

Markets:

Topics:

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-03-20 @ 15:00:00 (21 hours ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 951 words

Reading Time: 6 minutes read

Sentences: 46 lines

Sentence Length: 21 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Coin Telegraph

News ID: 27192603

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About Coin Telegraph

Coin Telegraph Logo

Main Topics: Crypto

Official Website: cointelegraph.com

Update Frequency: 579 posts per day

Year Established: 2013

Headquarters: United States

News Last Updated: 8 hours ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

Content Availability: Worldwide

News Language: English

RSS Feed: Available (XML)

API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #11

Publisher Details

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