Layer-2 Ethereum Ecosystem Growth Could Pose Future Risks

Recent research into the growth of the layer-2 Ethereum scaling ecosystem has revealed potential problems for the network down the line.

New findings from Binance Research have shed light on potential issues for the Ethereum network as the layer-2 ecosystem grows.

Ethereum successfully transitioned to proof-of-stake but still cannot scale natively until sharding implementation sometime late next year. This will result in the continued growth of the layer-2 scaling ecosystem.

The research suggested that this growth could “increasingly accumulate revenues away from the Ethereum mainnet.”

This migration could potentially lower staking yields for Ethereum validators, “which in turn could introduce new risks to the security of the Ethereum network.”

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