🔥 L2 Centralization: Why Ethereum's Future is at Risk 🧵
Most L2s will remain centralized forever, driven by perverse incentives. Here’s why $ETH has betrayed its decentralized roots:
🔶 Centralized Control: Major L2s have admin keys controlled via multi-sig, enabling censorship and even theft of funds.
🔶 For-Profit Companies: Proposed solutions to L2 centralization are overly optimistic, as profit-driven entities are unlikely to relinquish revenue.
🔶 ETH's Shift to Centralized Services: Competing L1s & L2s are devouring ETH’s user base while ETH's leadership promotes centralized solutions.
🔶 Privacy Erosion: ETH's push toward L2s compromises the original cypherpunk ideals of privacy and censorship resistance.
🔶 Economic Security: ETH’s shift away from on-chain usage reduces its economic security, and L2s create clear conflicts of interest that restrict L1 scaling.
🔶 Fragmentation: L2 interoperability remains an unsolved problem, fragmenting the ecosystem and damaging user experience.
Conclusion: The solution lies in supporting scalable competitors of ETH and BTC, keeping the dream of decentralization alive!
