Gnosis co-founder delivered a speech on \”Limitations of Layer 2\” to discuss L2 technology limitations, neutrality and other issues

On March 6, Martin K ö ppelmann, the co-founder of Gnosis, an Ethereum infrastructure company, shared the content of \”The Limits of L2\” in ETH Denver, the Ethereum Denver conference, and discussed the technical limitations, neutrality, the lack of L1 ossification challenges, the security of local assets, and the solutions proposed for the \”Ethereum agreement\”.

Interpretation of this information:

Martin Köppelmann, the co-founder of Gnosis, spoke about the technical limitations of Layer 2 (L2) solutions in the Ethereum infrastructure during the Ethereum Denver conference on March 6. The talk, titled “The Limits of L2,” discussed the challenges faced by L2 solutions, including the lack of L1 ossification, neutrality, and security of local assets.

L2 refers to the second layer of solutions built on top of the Ethereum mainnet. These solutions are designed to alleviate network congestion, reduce gas fees, and increase transaction speeds. Some examples of L2 solutions include state channels, rollups, and sidechains.

Köppelmann’s talk centered on the technical limitations of L2 solutions, which include the lack of L1 ossification. L1 refers to the Ethereum mainnet, and ossification refers to the protocol being set in stone. L1’s lack of ossification means that any changes made to the protocol could potentially affect L2 solutions. This lack of stability could hinder the long-term success of L2 solutions.

Another challenge faced by L2 solutions is neutrality. Köppelmann noted that L2 solutions are not neutral since they are built and controlled by specific entities. He highlighted the importance of neutrality in the Ethereum infrastructure to ensure fair competition and prevent centralization.

The security of local assets is another concern with L2 solutions. Köppelmann cited the recent hack of the Poly Network, which resulted in the loss of over $600 million of digital assets. He emphasized the importance of security in L2 solutions and proposed solutions such as a dedicated security team to prevent such incidents.

Köppelmann also discussed potential solutions for the “Ethereum agreement.” He proposed standardization of L2 solutions and a clear definition of their role in the overall Ethereum infrastructure. He advocated for the development of a common Layer 2 infrastructure and the integration of L2 solutions into the Ethereum ecosystem.

In summary, Köppelmann’s talk highlighted the challenges faced by L2 solutions in the Ethereum infrastructure. He emphasized the importance of stability, neutrality, and security in L2 solutions and proposed solutions to address these concerns. The talk underscored the need for continued research and development to ensure the long-term success of L2 solutions on the Ethereum network.