2/2 Why it happens? If L1 is fast and cheap people will think they can use it for anything: storage, gambling, sending money, selling horses and sheeps. Then you'll need anyway L2 solutions to break bottlenecks. It's just a function of time and success
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Just because you *can* put everything on L1, doesn't mean you should. L2 architecture (particularly for something like an exchange) is more elegant no matter how fast the underlying blockchain is.
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Anything that handles matching or execution or settlement needs to be equivalent to an l1. Censorship resistance and safety are both hard requirements.
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Yea, so
@solana is the perfect l2 :). Move your erc20s into and bridge and get the benefits of cheap low latency settlement with financial rails like exchanges and stable coins without ever needing to go back to the l1. -
+++ If you're thinking of a L2, might as well also make it an L1. If you're thinking of an L1, remember that it can later become an L2 (even on itself!)
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That's why L2 solutions are popping out.