📈 A report from Galaxy Research suggests that Bitcoin's layer 2 scaling networks, especially “rollups,” may not be sustainable in the long term despite their current popularity.

🔍 Main challenge:

- Cost of posting data to the base layer.

- Rollups need to generate revenue from transaction fees from many users.

💡 How it works:

- Compress multiple transactions into one batch and post the summary to the main blockchain.

- Bitcoin has a capacity limit of 4MB, each transaction posting data takes up to 400KB.

💪 Fierce competition:

- Rollups need to excel at generating fee revenue to survive.

- Base fees may increase, pushing small transactions out of the market.

💬 Alexei Zamayatin from BOB suggests using Celestia or the Bitcoin sidechain to save costs, but may sacrifice some of the decentralization and security of Bitcoin.

👉 What do you think about the future of Bitcoin rollups? Comment below! 🚀